29. Institutions and payment institutions should always consider a function as critical or important in the following situations [See also Article 30 Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.]:
a. where a defect or failure in its performance would materially impair:
i. their continuing compliance with the conditions of their authorisation or its other obligations under Directive 2013/36/EU, Regulation (EU) No 575/2013, Directive 2014/65/EU, Directive (EU) 2015/2366 and Directive 2009/110/EC and their regulatory obligations;
ii. their financial performance; or
iii. the soundness or continuity of their banking and payment services and activities;
b. when operational tasks of internal control functions are outsourced, unless the assessment establishes
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