The
Joint Forum released a consultation document entitled “Outsourcing in Financial Services”. The report examines the growth in outsourcing in the financial sector and spells out potential risks that outsourcing activities can pose to financial sector firms. The report presents a set of principles which are designed to assist regulated entities in determining the minimum steps they should take when considering outsourcing activities.
These include establishing a coherent policy and specific risk management programmes as well as determining the types of issues that should be considered in contracts. The report also contains some broad principles to help supervisors in taking into account outsourcing in their regular risk reviews of firms.
The Joint Forum has developed its principles in conjunction with the International Organization of Securities Commissions (IOSCO), which is producing a specific set of principles for the securities industry.
At the same time, the International Organization of Securities Commissions Standing Committee (IOSCO) published for public consultation a Consultation Report on “Principles on Outsourcing of Financial Services for Market Intermediaries”. Comments are invited by September 20, 2004.
The Joint Forum's principles are high-level and cross-sectoral, designed to provide a minimum benchmark against which all financial institutions can gauge their approach to outsourcing. The IOSCO principles are complementary and will be more focused and designed specifically for securities firms.
Joint Forum Report
IOSCO Report
IOSCO press release
© IOSCO
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