1.When considering the criterion set out in Article 31(2), point (d), of Regulation (EU) 2022/2554, the ESAs shall assess whether the ICT third-party service provider fulfils the following ‘step 1’ sub-criteria:
(a)sub-criterion 4.1: the share of the total number of financial entities, broken down by categories of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554, for which no alternative ICT third-party service provider is available which has the required capacity to provide the same ICT services that support critical or important functions of financial entities as the one provided by the relevant ICT third-party service provider;
(b)sub-criterion 4.2: the share of the total number of financial entities, broken down by categories of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554, for which it is highly difficult to migrate an ICT service provided by the relevant ICT third-party service provider that supports critical or important functions of financial entities to another ICT third-party service provider.
2.The sub-criterion 4.1 set out in paragraph 1, point (a), shall be calculated as follows:
number of financial entities of a category of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554, for which no alternative ICT third party service provider is available which has the required capacity to provide the same ICT services that support critical or important functions of financial entities as the one provided by the relevant ICT third party service provider
total number of financial entities of that category of financial entities as set out in Article 2(1)of Regulation 2022/2554
3.The sub-criterion set out in paragraph 1, point (b), shall be calculated as follows:
number of financial entities of a category of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554, for which it is highly difficult to migrate or reintegrate an ICT service provided by the ICT third party provider that support critical or important functions to another ICT third party provider
total number of EU financial entities of that category of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554
(a)the share of the total number of financial entities referred to in paragraph 1, point (a), is of at least 10 % of the total number of financial entities for a category of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554;
(b)the share of the total number of financial entities referred to in paragraph 1, point (b), is of at least 10 % of the total number of financial entities or a category of financial entities as set out in Article 2(1) of Regulation (EU) 2022/2554.
5.When considering the criterion set out in Article 31(2), point (d), of Regulation (EU) 2022/2554 and where the ICT third-party service provider fulfils the ‘step 1’ sub-criteria referred to in paragraph 1 of this Article, the ESAs shall carry out their assessment in the light of the step two sub-criterion specified in Article 31(2), point (d)(i) of Regulation (EU) 2022/2554.