# Article 1 — Assessment approach **Commission Delegated Regulation (EU) 2024/1502 · binding · OJ L, 2024/1502, 30.5.2024 · dated 22 Feb 2024 [in force]** *In force · Commission Delegated Regulation (EU) 2024/1502, OJ L, 2024/1502, 30.5.2024 · Checked against EUR-Lex on 26 Oct 2026 · [Official source](https://eur-lex.europa.eu/eli/reg_del/2024/1502/oj/eng)* 1. When considering the criteria set out in [Article 31(2)](../../articles/31.md) of Regulation (EU) 2022/2554 to designate an ICT third-party service provider that is critical for financial entities, the ESAs shall apply the following approach: **(a)** as a first step, the ESAs shall assess whether the ICT third-party service provider fulfils all of the ‘step 1’ sub-criteria set out in Articles 2(1), 3(1), and 5(1); **(b)** as a second step, for those ICT third-party service providers that fulfil all of the ‘step 1’ sub-criteria referred to in point (a), the ESAs shall carry out their assessment in the light of the ‘step 2’ sub-criteria referred to in Articles 2(5), 3(4), 4(1), and 5(5). By way of derogation from the first sub paragraph, for the assessment of the criterion (c) of [Article 31(2)](../../articles/31.md) of Regulation (EU) 2022/2554, the first step shall be covered by the assessment to be carried out for the criteria (a), (b) and (d) of [Article 31(2)](../../articles/31.md) of Regulation (EU) 2022/2554. 1. After the end of the time period for the submission of a reasoned statement referred to in [Article 31(5)](../../articles/31.md), first subparagraph, of Regulation (EU) 2022/2554, the ESAs, through the Joint Committee and upon recommendation from the Oversight Forum, shall designate an ICT third-party service provider as critical for financial entities if it fulfils all the ‘step 1’ sub-criteria referred to in paragraph 1, point (a), and following a positive outcome of the assessment carried out in relation to the ‘step 2’ sub-criteria referred to in paragraph 1, point (b).