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CEBS started a second round of consultation on the standards for outsourcing of credit institutions’ business activities. The aim of the CEBS is to promote convergence in supervisory approaches to outsourcing. The proposed standards are based on current practices and also take into account international and European initiatives in the field of outsourcing. They are principle based and are designed to ensure an appropriate level of convergence while leaving some room for flexibility in order to accommodate specific rules and market practices at the national level.
In the proposed standards, outsourcing is defined as an authorised entity’s use of a third party to perform activities on a continuing basis that would normally be undertaken by the authorised entity. One key element is that outsourcing arrangements can never result in the delegation of senior management’s responsibilities.
Deadline for comments is 6 July 2006
Press release
Revised consultation paper
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