Menu Close

In Focus: Operational Resilience – Outsourcing Arrangements 

With increasing pressures for financial services institutions to keep pace with the levels of innovation in the market, firms have sought solutions from third party service providers.  This rising trend in outsourcing continues, notably driven by cost reduction, advances in technology and the requirement for firms to increase agility. 

As our series on the regulators’ new operational resilience rules continues Lindsey Domingo at Xcina Consulting Limited provides additional insight for organisations to help them ensure their current and new arrangements are in line with the expectations from the FCA and/or PRA. 

 

When firms outsource a material business function they need to obtain appropriate contractual guarantees of service levels and mitigate any risk to their business.  

The FCA have outlined key areas firms need to consider when negotiating services with a third party provider beyond technical, commercial, and value-for-money.  

What should service contracts need to include?  The FCA and PRA has set out the minimum requirements for firms. 

Firms should manage risks effectively to minimise adverse business and regulatory implications, working more closely with third party service providers.  We share an example of how non-compliance affected a firm. 

Our timeline for implementation will help ensure firms comply with the expectations set out by the FCA and PRA by the end of the first quarter in 2022.  

 

Lindsey Domingo

Senior Director and Regulatory Compliance Lead

Speak to me directly by Email, or
Telephone:+44 (0)20 3745 7826 

 

 

Lindsey has a strong track record in providing risk advisory services with a focus on governance, regulatory compliance, conduct and culture, data protection, and third-party assurance. He helps organisations successfully address governance, risk management and compliance challenges.  

To discuss how the areas highlighted in this email, or any other aspect of risk management, information governance or compliance impact your business, speak with our team, tell us what matters to you and find out how we can help you navigate complex issues to help you deliver long term value.


If you have any questions or comments, or if there’s anything you would like to see covered, please get in touch by emailing Xcina Consulting at info@xcinaconsulting.com.  We’d love to hear from you.

 

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.