Regulatory Requirements for Outsourcing

Under the MiFID framework (both I and II), the outsourcing of critical and important functions is subject to strict requirements. Many outsourcing arrangements are strictly prohibited while the ones allowed must ensure that they do not create undue operational risks or impair the quality and independence of firms’ activities and internal controls or the ability of the investment firm and the relevant NCA to supervise compliance with regulatory requirements.

This course provides the essential knowledge required to navigate these complex requirements and offers simple guidance to assist regulated entities to comply in the most efficient manner.

Course Content

• The basics of outsourcing
• What constitutes a material outsourcing arrangement and why that matters
• What you need to be mindful of when dealing with regulators and why regulators are concerned about outsourcing
• The provisions that apply to all authorised firms in the financial services sector
• The additional provisions that apply to outsourcing arrangements entered into by the financial services sector
• A review and checklist of the main issues that typically arise when negotiating outsourcing contracts
• Lessons to be learnt from enforcement action taken by the regulators
• Internal outsourcing policies for businesses – what they should contain and practical points
• International outsourcing arrangements and some specific issues to be aware of

Who should attend

• Compliance Officers
• Risk Managers
• Directors of Investment Firms
• Fiduciary service providers
• Legal professionals
• All support firms that cater the Investment Firms Sector