In January 2020 the FCA said that “Control over outsourcing is a key part of operational resilience”. This How to Guide brings together best practice, relevant regulations and, roles and responsibilities in a practical framework that you can use to self assess your own framework, select sections and turn them into internal procedures or just add your firm details and adopt it as your internal outsourcing policy. The How to Guide explains the relevant regulations such as the CRD, MiFID and of course SYSC.
The regulators are updating their rules. They are doing this because there is a new world-wide approach to the regulation of outsourcing and third-party risk. These changes have come about because the way that regulated businesses operate has evolved since the rules were last changed including many businesses now using the Cloud.
FCA expects you to identify and set impact tolerances for the maximum tolerable disruption, carry out mapping and testing to a level of sophistication necessary to do so. You are also expected to have identified any vulnerabilities in your operational resilience. This guide talks you through how the rules work and what you need to do to meet those regulatory expectations.
When implementing any regulation a certain tolerance has to be set for regulatory risk. In this How to Guide that regulatory risk tolerance is set for businesses wanting to show they are taking outsourcing seriously and doing the right thing in their firm based on real regulatory and compliance advisory experience of what other firms are actually doing as best practice, and what the PRA has said they expect.
The How to Guide covers:
- Key messages to use internally
- What to include in the written agreement
- The current and historic rules, and guidance
- Regulatory notifications
- The relationships that need managing
- An outsourcing checklist
The How to Guide is written succinctly and has the crispness expected in vibrant businesses whilst getting to the point. The main document is 14 pages long, as it carefully covers all of the rules and regulations. The six-page outsourcing checklist is included as an annex and also available for digital download as an Excel sheet. The framework avoids use of regulatory jargon and legal terminology but includes definitions of the key terms used when referring to outsourcing.
The How to Guide enables you to apply your own firm's branding and inhouse terminology as it has in plain background and black and white.
How to Comply with FCA Outsourcing Rules
This product is in Microsoft Word (*.docx)