CTRL 8.1.2 Meaning of outsourcing

In these rules:

outsourcing, for an authorised firm, means any arrangement that involves the firm relying on a separate service provider (including a member of the firm’s corporate group) for the exercise of a function that relates to a regulated activity of the firm and would otherwise be exercised by the firm, but does not include the following arrangements:

(a) arrangements to provide advisory services (such as the provision of legal advice), audit services, personnel training services, billing services, and physical security;
(b) supply arrangements and functions (including, for example, the supply of electricity or water and the provision of catering and cleaning services);
(c) the purchase of standardised services (such as, for example, market information services and the provision of prices);
(d) the appointment of a group employee to exercise a controlled function for the firm.

 

Derived from QFCRA RM/2020-4 (as from 1st July 2021)