Article 40Ongoing oversight
1. When conducting oversight activities, in particular general investigations or inspections, the Lead Overseer shall be assisted by a joint examination team established for each critical ICT third-party service provider.
2. The joint examination team referred to in paragraph 1 shall be composed of staff members from:
(a) the ESAs;
(b) the relevant competent authorities supervising the financial entities to which the critical ICT third-party service provider provides ICT services;
(c) the national competent authority referred to in Article 32(4), point (e), on a voluntary basis;
(d) one national competent authority from the Member State where the critical ICT third-party service provider is established, on a voluntary basis.
Members of the joint examination team shall have expertise in ICT matters and in operational risk. The joint examination team shall work under the coordination of a designated Lead Overseer staff member (the ‘Lead Overseer coordinator’).
3. Within 3 months of the completion of an investigation or inspection, the Lead Overseer, after consulting the Oversight Forum, shall adopt recommendations to be addressed to the critical ICT third-party service provider pursuant to the powers referred to in Article 35.
4. The recommendations referred to in paragraph 3 shall be immediately communicated to the critical ICT third-party service provider and to the competent authorities of the financial entities to which it provides ICT services.
For the purposes of fulfilling the oversight activities, the Lead Overseer may take into consideration any relevant third-party certifications and ICT third-party internal or external audit reports made available by the critical ICT third-party service provider.
DORA, the European Union regulation on digital operational resilience, Article 40
Who performs the oversight, and what follows an investigation. A joint examination team is set up for each critical provider to assist the Lead Overseer, especially in investigations and inspections. It draws on staff from the ESAs and from the competent authorities supervising the financial entities the provider serves. Two further authorities may join voluntarily: the NIS2 authority referred to in Article 32(4)(e), and one national authority from the Member State where the provider is established. Members need expertise in ICT matters and operational risk, and a Lead Overseer staff member coordinates the team.
Within three months of completing an investigation or inspection, the Lead Overseer, after consulting the Oversight Forum, adopts its recommendations. They go immediately to the provider and to the competent authorities of the financial entities it serves. The Lead Overseer may take into account certifications and internal or external audit reports that the provider makes available.
The composition matters. Oversight of a critical supplier is carried out partly by the supervisors of the entities that depend on it, and the recommendations go directly to those authorities.
Text: Regulation (EU) 2022/2554, as published in the Official Journal of the European Union, from EUR-Lex. Only the Official Journal text is authentic.