ANNEX IIInstructions

II.Template-related instructions

II.7Critical functions and core business lines

II.7.1General remarks

39.Pursuant to Article 6(1) of Commission Regulation (EU) 2016/77820, a function shall be considered critical, when it meets both of the following:

  1. 1.

    the function is provided by an institution to third parties not affiliated to the institution or group; and

  2. 2.

    a sudden disruption would likely have a material negative impact on the third parties, give rise to contagion or undermine the general confidence of market participants due to the systemic relevance of the function for the third parties and the systemic relevance of the institution or group in providing the function.