outsourcing

outsourcing, for an authorised firm, means any form of arrangement that involves the firm relying on a third party service provider (including a member of the firm's group) for the exercise of a function relating to regulated activities of the firm that would otherwise be exercised by the firm, but does not include the following arrangements:

(a) discrete advisory services (including, for example, the provision of legal advice), audit services, procurement of specialised training, billing, 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 (including, for example, market information services and the provision of prices);
(d) the appointment of a groupemployee to exercise a controlled function for the firm.
Amended by QFCRA RM/2010-07 (as from 1st January 2011)