CTRL 8.1.5 Outsourcing arrangements

(1) An authorised firm may enter into an outsourcing arrangement only if:
(a) the firm’s governing body has approved the firm’s outsourcing policy; and
(b) the arrangement:
(i) is permitted by the policy;
(ii) will not reduce the firm’s ability to fulfil its obligations to depositors, policyholders, clients and other stakeholders;
(iii) will not increase the firm’s risk of non-compliance with the law applicable in the QFC or any other applicable law; and
(iv) will not affect the Regulatory Authority’s ability to appropriately supervise the firm.
Example for paragraph (c) (iii)
The place where the service provider is located, or that place’s legal system, could prevent the Authority from appropriately supervising the firm.
(2) The outsourcing arrangement must be in writing.

 

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