Question ID: 3100 - DORA099
Regulation Reference: (EU) 2022/2554 - Digital Operational Resilience Act (DORA)
Topic: Scope of group
Article: 3(60-64)
Status: Final
Date of submission: 04 Jun 2024
Question
We receive many questions from insurance intermediaries on how to determine for group structures whether they are in scope of DORA.
It is not defined in DORA how to calculate whether you meet the 250FTE criterium. We found guidance from the EC in 2003/361/EC on how to calculate whether a firm is small/medium/large and how to consider linked entities and parent entities, but we are not sure if this is the guidance to follow. Can you please provide clarity on these matters?
EIOPA answer
The answer to this question is provided by the European Commission.
The EC Recommendation 2003/361/EC is applicable considering the thresholds as defined in DORA
(2787 - DORA011 - EIOPA).
This means that the figures to be used by intermediaries to calculate the number of employees, annual turnover and annual balance sheet total should be at enterprise level.
In case of the intermediary is part of a group the figures to be used to calculate the number of employees, annual turnover and annual balance sheet total should be calculated at group level applying the concept of linked enterprises as explained in the recommendation. For the purpose of DORA, in light of proportionality, only the employees, turnover and balance sheet of the financial entities belonging to their group should be considered.
Disclaimer provided by the European Commission:
The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.