The International Organisation of Securities Commissions (IOSCO) has published the final report on its updated outsourcing principles.
The report covers the definition of outsourcing, the assessment of materiality and criticality and the treatment of outsourcing on a cross-border basis, and contains 7 principles covering:
- due diligence in the selection and monitoring of a service provider and its performance;
- the contract with a service provider;
- information security, business resilience, continuity and disaster recovery;
- confidentiality issues;
- concentration of outsourcing arrangements;
- access to data, premises, personnel and associated rights of inspection; and
- termination of outsourcing arrangements.
Whilst FMIs are outside the scope of the principles, IOSCO says they may wish to consider applying them.