CTRL 8.2.1 Meaning of material outsourcing

In these rules:

material outsourcing, for an authorised firm, means the outsourcing of a function of such importance that weakness or failure in the exercise of the function would cast serious doubt on:

(a) the firm’s ability to comply with:
(i) any regulations, rules or principles; or
(ii) any condition, restriction or requirement of its authorisation;
(b) its financial performance or position; or
(c) its ability to continue in business.

Note The outsourcing of the internal audit function is a material outsourcing — see rule 6.4.2 (3).

 

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