Compliance Insights Articles

As part of the FCA Business Plan 18/19 the FCA are currently reviewing arrangements that firms have in place when outsourcing. They recently launched a discussion paper on the subject and aim to release proposals in late 2019. The catalyst for the cross-sector review of outsourcing is the fact that 17% of breaches reported to the FCA were due to a supplier of a regulated firm, rather than the firm itself. This represents the second highest root cause category of breaches! It’

The European Banking Authority (EBA) Outsourcing Guidelines come into force on 30 September 2019. The revised guidelines, which replace the 2006 Committee of European Banking Supervisors Guidelines on Outsourcing, set out specific requirements for all financial institutions within the EBA’s remit, including banks, building societies, designated investment firms, IFPRU investment firms and credit institutions when they outsource functions to a service provider. The Guidelines