The International Organization of Securities Commissions (Iosco) sets out seven principles for effective outsourcing in securities markets.
The seven principles cover the due diligence process in selecting a service provider, the contract with a service provider, business continuity issues, client confidentiality, concentration of outsourcing services, termination procedures and access to books and records.
Central to the guidance are a set of performance standards that provide that the outsourcing firm, its management and governing authority must retain full legal liability and accountability to the regulator for all outsourced functions. Moreover, the outsourcing firm must retain the competence and ability to ensure that the firm complies with regulatory requirements.
Download the document now 196.6 kb (Adobe Acrobat Document)