OUTSOURCING. I. Outsourcing in the E.U. Banking Sector. a. What is Outsourcing? Seminar for US clients P. billot September 2007

Size: px
Start display at page:

Download "OUTSOURCING. I. Outsourcing in the E.U. Banking Sector. a. What is Outsourcing? Seminar for US clients P. billot September 2007"

Transcription

1 OUTSOURCING Outsourcing has become a widespread phenomenon in Europe's corporate sector. A recent survey by the United Nations Conference on Trade and Development ( UNCTAD ) revealed that nearly half of Europe's top 500 companies have undertaken outsourcing of some kind or plan to do so in the coming years. 1 Financial services companies were particularly prevalent among those that reported outsourcing. Outsourcing has been used for quite some time in the financial services industry. Since the 1970s, banks have outsourced quasi-clerical activities, such as printing and data storage. In the 1980s and 1990s, outsourcing of information services increased due to the rapid developments in information technology. With banking business increasingly becoming an industrial process, the cost of production has become a key element of profitability, inducing financial institutions, to the extent possible, to relocate their support, and sometimes even more strategic 2, functions to low-cost countries. Although outsourcing is becoming more important for banks, uncertainty still surrounds various aspects of outsourcing, and regulators are increasingly demonstrating their willingness to control and limit the development of outsourcing. Given the importance and the attractiveness of the phenomenon, more analysis is necessary. This paper describes the facts and the implications of outsourcing in the EU financial services industry. Section 1 defines various aspects and concepts of outsourcing, and Section 2 describes the regulatory framework. Finally, Section 3 describes key regulatory principles. I. Outsourcing in the E.U. Banking Sector a. What is Outsourcing? 1 Service offshoring in Europe, UNCTAD and Roland Berger Strategy Consultants, June Report on EU banking structure, ECB, November

2 Outsourcing within the context of banking or financial services is defined by the European Central Bank as the supply to a credit institution by another entity of services and facilities that form part of the business processes that are necessary for the provision of banking or other financial services. 3 b. Activities Outsourced and Motives for the European Banks Outsourcing is increasingly (if not commonly) practiced in the banking sector. As a survey conducted by the European Central Bank ( ECB ) in March-April 2004 revealed, 80 out of 82 surveyed banks within 19 different EU countries reported some form of outsourcing. The most outsourced activities reported by the banks were: (1) hardware, (2) card processing, (3) software, (4) call centers, (5) clearing and settlement, (6) accounting, (7) marketing, (8) human resources, (9) client accounts. The motives for outsourcing were (1) cost reduction, (2) access to new technology or better management, (3) focus on core activities, (4) achievement of scale economies, (5) free resources, (6) quality of the service, (7) generate change and flexibility. The study showed that nearly 2/3 of the respondent banks applied captive business models, or intra-group outsourcing, i.e. with subsidiaries or sister companies, or creation of joint ventures, or strategic alliances with other licensed institutions. The remaining banks reported resorting to service providers external to the group. Moreover, banks often use different types of business models simultaneously, depending on the type of the outsourced activities. 3 European Central Bank, Report on EU Banking Structure, November 2004, p. 25. Other definitions include : a regulated entity s use of a third party to perform activities on a continuing basis that would normally be undertaken by the regulated entity, now or in the future (Basel Committee on Banking Supervision - Joint Forum, Outsourcing in Financial Services, February 2005), or an authorized entity s use of a third party (the outsourcing service provider ) to perform activities that would normally be undertaken by the authorized entity, now or in the future. The supplier may itself be an authorized or unauthorized entity (Committee of European Banking Supervisors, Guidelines on Outsourcing, December 14, 2006)

3 Contrary to the results of previous studies, the respondent EU banks did not appear to have many outsourcing projects with providers in emerging market economies as offshore centers. In addition, only 25% of the respondent banks said they were considering future outsourcing to offshore locations, which in general have a reputation of being more cost efficient but less regulated. Around 60% of the banks surveyed said they would not outsource activities to offshore locations. By contrast, the Basel Committee working group report seems to indicate that outsourcing by EU regulated entities into emerging countries (especially India) is bound to increase. 4 II. Regulatory Framework Regulators have long identified numerous risks that exist in connection with outsourcing in the banking and financial sector. Increased reliance on the outsourcing of activities may impact the ability of regulated entities to manage their risks and monitor their compliance with regulatory requirements. Various international bodies and regulators have established rules that apply to outsourcing in the E.U. a. Banking Directive No EC Contains no Specific Provisions regarding Outsourcing Neither banking directive n 2000/12 EC, nor restated banking directive n EC (the Directive ), however, contains any specific provision regarding outsourcing. Indeed, article 22 of the Directive provides only that every credit institution (must) have robust governance arrangements, which include a clear organizational structure with well defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks it is or might be exposed to, and adequate internal control mechanisms, including sound administrative and accounting procedures. 4 See Basel Committee Guiding principles on Outsourcing in Financial Services - February 2005, pp

4 b. Basel Committee Joint Forum Guiding Principles on Outsourcing in Financial Services - February 2005 The Basel Committee Joint Forum issued a set of principles entitled Outsourcing in Financial Services in February There are 9 detailed guiding principles (the content of which is summarized in part 3, infra). There are few differences, if any, between those guiding principles and the CEBS guidelines. c. CEBS Guidelines on Outsourcing December 2006 The Committee of European Banking Supervisors ( CEBS ) began to work in 2002 to develop high-level principles that could be used to help converge supervisory approaches and practices regarding outsourcing. In April 2004, CEBS issued a first version of High Level Principles on Outsourcing, which was amended and restated as Guidelines on Outsourcing in December Although the guidelines are not legally binding, they are in practice enforced by local regulators of EU Member States. There are 12 detailed guidelines (the content of which is summarized in part 3, infra). In addition, a number of countries (e.g., the United States, France, Germany, Japan, the Netherlands, the UK, Switzerland) have introduced legislative measures in line with the thenexisting CEBS guidelines and the ongoing work of the Basel Committee. d. MIFID & MIFID Level 2 The Markets in Financial Instruments Directive No EC ( MIFID ) provided that an investment firm shall ensure, when relying on a third party for the performance of operational functions which are critical for the provision of continuous and satisfactory service to clients and the performance of investment activities on a continuous and satisfactory basis, that it takes reasonable steps to avoid undue additional operational risk. Outsourcing of important operational - 4 -

5 functions may not be undertaken in such a way as to impair materially the quality of its internal control and the ability of the supervisor to monitor the firm's compliance with all obligations. 5 The Directive No EC 6 ( MIFID 2 ) established a very comprehensive framework regarding outsourcing 7. The principles set out in the MIFID 2 are largely based on those set out in the CEBS guidelines and the Basel Committee guiding principles in the banking sector. The MIFID 2 primarily applies to investment firms, but it also applies to credit institutions that provide investment services (and thus are licensed as investment firms). e. Rules on Protection of Personal Data (Directives No. 95/46 EC and No. 2002/58 EC) Outsourcing may often raise issues of confidentiality, in particular where personal data is involved. In compliance with Directives No. 95/46 EC 8 and No. 2002/58 EC 9, resorting to an outsourcing service provider will require that the outsourcing entity informs its clients of the transfer of clients personal data to the service provider. f. National Rules on Banking Confidentiality Banking confidentiality is also a potential obstacle to the outsourcing of certain functions of a bank, particularly when information falling within the scope of confidentiality is transferred to a third party (e.g. in case of outsourcing of the management of clients accounts). Courts generally hold that only a bank s clients can release the bank from its obligation of confidentiality. 5 Article Implementing Directive No EC as regards organizational requirements and operating conditions for investment firms 7 See articles 13 to 15 of that directive 8 Esp. articles 16 and 17 9 Recital No

6 Consequently, banks must seek authorization from their clients where necessary to comply with their duty of confidentiality. g. CEBS Guidelines, Basel Committee Principles and MIFID and MIFID 2 Provisions Comply with Banking Confidentiality Rules and Personal Data Rules The CEBS guidelines, the Basel Committee principles and the MIFID and MIFID 2 provisions comply with banking confidentiality rules and personal data rules, as they contain confidentiality principles under which the service provider must protect any confidential information relating to clients. 10 Thus, a firm complying with those principles and guidelines should comply with its legally imposed duties of confidentiality and non-communication of personal data. III. Key Regulatory Principles The following principles are key regulatory principles related to outsourcing. They may differ slightly from the express provisions of the MIFID or MIFID 2, the CEBS Guidelines, or the Basel Committee s Guiding Principles, but they encompass the same underlying principles. The provisions of the MIFID, MIFID 2 and, probably, the CEBS Guidelines, will have more significance to an EU national regulator than the Basel Committee s Guiding Principles. Senior management functions cannot be outsourced. 11 Core activities cannot be outsourced to non-licensed entities 12 Outsourcing institutions remains liable for the management of risks associated with outsourcing Article 14.2-(j) of MIFID 2, guiding principle VII of Basel Committee, guideline 8 of CEBS 11 Basel Committee Guiding Principle No. I; MIFID 2, art a; CEBS Guidelines No MIFID 2, art a; CEBS Guideline No

7 Outsourced activities must be dealt with by outsourcing entity s internal control. 14 The competent regulator can supervise the service provider s activity. 15 A formal written agreement defining roles and responsibilities of the outsourcing entity and of the service provider is required. 16 (continued ) II. 13 MIFID 2, art c and e; CEBS Guidelines No. 2 and No. 7; Basel Committee Guiding Principle No. 14 MIFID 2, art c, -e and -i; CEBS Guideline No. 11; Basel Committee Guiding Principle n II. 15 MIFID 2, art h; CEBS Guideline No MIFID 2, art. 14-3; CEBS Guidelines No. 8 and No. 9; Basel Committee Guiding Principle No. V

Mapping of outsourcing requirements

Mapping of outsourcing requirements Mapping of outsourcing requirements Following comments received during the first round of consultation, CEBS and the Committee of European Securities Regulators (CESR) have worked closely together to ensure

More information

GUIDELINE ON THE APPLICATION OF THE OUTSOURCING REQUIREMENTS UNDER THE FSA RULES IMPLEMENTING MIFID AND THE CRD IN THE UK

GUIDELINE ON THE APPLICATION OF THE OUTSOURCING REQUIREMENTS UNDER THE FSA RULES IMPLEMENTING MIFID AND THE CRD IN THE UK GUIDELINE ON THE APPLICATION OF THE OUTSOURCING REQUIREMENTS UNDER THE FSA RULES IMPLEMENTING MIFID AND THE CRD IN THE UK This Guideline does not purport to be a definitive guide, but is instead a non-exhaustive

More information

CONSULTATION PAPER ON HIGH LEVEL PRINCIPLES ON OUTSOURCING COVER NOTE

CONSULTATION PAPER ON HIGH LEVEL PRINCIPLES ON OUTSOURCING COVER NOTE CEBS CP 02 April 2004 COMMITTEE OF EUROPEAN BANKING SUPERVISORS CONSULTATION PAPER ON HIGH LEVEL PRINCIPLES ON OUTSOURCING COVER NOTE Introduction 1. European banking supervisors began work in 2002 on

More information

14 December 2006 GUIDELINES ON OUTSOURCING

14 December 2006 GUIDELINES ON OUTSOURCING 14 December 2006 GUIDELINES ON OUTSOURCING CEBS presents its Guidelines on Outsourcing. The proposed guidelines are based on current practices and also take into account international, such as the Joint

More information

Risk-based Supervision and Compliance Function: New Challenges for Credit and Financial Institutions. 5th May 2006

Risk-based Supervision and Compliance Function: New Challenges for Credit and Financial Institutions. 5th May 2006 International Conference Regulatory Compliance and Training: emerging challenges for European Financial System Hellenic Bank Association European Bank Training Network Risk-based Supervision and Compliance

More information

Financial Services Guidance Note Outsourcing

Financial Services Guidance Note Outsourcing Financial Services Guidance Note Issued: April 2005 Revised: August 2007 Table of Contents 1. Introduction... 3 1.1 Background... 3 1.2 Definitions... 3 2. Guiding Principles... 5 3. Key Risks of... 14

More information

Global Preamble: Codes of Best Market Practice and Shared Global Principles 1

Global Preamble: Codes of Best Market Practice and Shared Global Principles 1 30 March 2015 Global Preamble: Codes of Best Market Practice and Shared Global Principles 1 The wholesale foreign exchange (FX) market is a global market used by banks and other institutions, as well as

More information

Align Technology. Data Protection Binding Corporate Rules Processor Policy. 2014 Align Technology, Inc. All rights reserved.

Align Technology. Data Protection Binding Corporate Rules Processor Policy. 2014 Align Technology, Inc. All rights reserved. Align Technology Data Protection Binding Corporate Rules Processor Policy Confidential Contents INTRODUCTION TO THIS POLICY 3 PART I: BACKGROUND AND ACTIONS 4 PART II: PROCESSOR OBLIGATIONS 6 PART III:

More information

Fédération Bancaire Européenne European Banking Federation. Le Secrétaire Général. Consultation Paper on the High Level Principles on Outsourcing

Fédération Bancaire Européenne European Banking Federation. Le Secrétaire Général. Consultation Paper on the High Level Principles on Outsourcing Fédération Bancaire Européenne European Banking Federation Le Secrétaire Général N 0537 COK E-mail Mr José María Roldán Chairman Committee of European Banking Supervisors Banco de España, Alcalà 50 28014

More information

Policy Statement: Licensing Policy in respect of those activities that require a permit under the Insurance Business (Jersey) Law 1996

Policy Statement: Licensing Policy in respect of those activities that require a permit under the Insurance Business (Jersey) Law 1996 Policy Statement: Licensing Policy in respect of those activities that require a permit under the Insurance Business (Jersey) Law 1996 Issued: 11 February 2011 Glossary of terms: The following table provides

More information

OUTSOURCING GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2008

OUTSOURCING GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2008 OUTSOURCING GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2008 BANK OF TANZANIA PART I PRELIMINARY 1 These guidelines may be cited as the Outsourcing Guidelines for Banks and Financial Institutions,

More information

EUROPEAN CENTRAL BANK

EUROPEAN CENTRAL BANK 17.2.2005 C 40/9 EUROPEAN CTRAL BANK OPINION OF THE EUROPEAN CTRAL BANK of 4 February 2005 at the request of the Council of the European Union on a proposal for a directive of the European Parliament and

More information

Summary of responses to the public consultation on Cloud computing run by CNIL from October to December 2011 and analysis by CNIL

Summary of responses to the public consultation on Cloud computing run by CNIL from October to December 2011 and analysis by CNIL Summary of responses to the public consultation on Cloud computing run by CNIL from October to December 2011 and analysis by CNIL 1. Definition of Cloud Computing In the public consultation, CNIL defined

More information

Domestic Actuarial Regime and Related Governance Requirements under Solvency II

Domestic Actuarial Regime and Related Governance Requirements under Solvency II 2015 Domestic Actuarial Regime and Related Governance Requirements under Solvency II 1 Domestic Actuarial Regime and Related Governance Requirements under Solvency II Contents 1. Introduction...2 1.1 Background...

More information

BANKING UNIT BANKING RULES OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994

BANKING UNIT BANKING RULES OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994 BANKING UNIT BANKING RULES OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994 Ref: BR/14/2009 OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994 INTRODUCTION

More information

Corporate Policy. Data Protection for Data of Customers & Partners.

Corporate Policy. Data Protection for Data of Customers & Partners. Corporate Policy. Data Protection for Data of Customers & Partners. 02 Preamble Ladies and gentlemen, Dear employees, The electronic processing of virtually all sales procedures, globalization and growing

More information

Conflicts of Interest MiFID and the General Law

Conflicts of Interest MiFID and the General Law slaughter and may Companies Briefing Paper Act 2006 September 2008 Conflicts of Interest MiFID and the General Law Much has been said and written in recent years about the conflicts of interest that can

More information

Principles on Outsourcing by Markets

Principles on Outsourcing by Markets Principles on Outsourcing by Markets Final Report TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS July 2009 CONTENTS I. Introduction 3 II. Survey Results 5 A. Outsourced

More information

Principles for the supervision of financial conglomerates

Principles for the supervision of financial conglomerates THE JOINT FORUM BASEL COMMITTEE ON BANKING SUPERVISION INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS C/O BANK FOR INTERNATIONAL SETTLEMENTS CH-4002

More information

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 7 September 2016

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 7 September 2016 EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 7 September 2016 on the role of the Financial Supervisory Authority s representative on the European Central Bank s Supervisory Board, and on supervision

More information

GUIDE TO LIMITED LIABILITY PARTNERSHIPS IN GUERNSEY

GUIDE TO LIMITED LIABILITY PARTNERSHIPS IN GUERNSEY GUIDE TO LIMITED LIABILITY PARTNERSHIPS IN GUERNSEY CONTENTS PREFACE 1 1. Introduction 2 2. Key Features of the Guernsey LLP 2 3. Uses of Guernsey LLPs 4 4. Conclusion 4 PREFACE This Guide is a summary

More information

Advisory Guidelines of the Financial Supervision Authority. Requirements for Organising the Business Continuity Process of Supervised Entities

Advisory Guidelines of the Financial Supervision Authority. Requirements for Organising the Business Continuity Process of Supervised Entities Advisory Guidelines of the Financial Supervision Authority Requirements for Organising the Business Continuity Process of Supervised Entities These advisory guidelines were established by Resolution No

More information

EBA/GL/2012/06 22 November 2012. Guidelines. on the assessment of the suitability of members of the management body and key function holders

EBA/GL/2012/06 22 November 2012. Guidelines. on the assessment of the suitability of members of the management body and key function holders EBA/GL/2012/06 22 November 2012 Guidelines on the assessment of the suitability of members of the management body and key function holders Guidelines on the assessment of the suitability of members of

More information

Trading Services I Spotlight. Moving to the Standard Legal Entity Identifier. Client Data Management

Trading Services I Spotlight. Moving to the Standard Legal Entity Identifier. Client Data Management Trading Services I Spotlight Moving to the Standard Legal Entity Identifier Client Data Management 2 Understanding Client Relationships When large financial institutions refer to their clients, they are

More information

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 19 October on the regulation of financial leasing and financial leasing companies activities

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 19 October on the regulation of financial leasing and financial leasing companies activities EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 19 October 2015 on the regulation of financial leasing and financial leasing companies activities (CON/2015/37) Introduction and legal basis On 4 September

More information

UNCITRAL legislative standards on electronic communications and electronic signatures: an introduction

UNCITRAL legislative standards on electronic communications and electronic signatures: an introduction legislative standards on electronic communications and electronic signatures: an introduction Luca Castellani Legal Officer secretariat International harmonization of e-commerce law Model Law on Electronic

More information

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 12 November 2015. on the regulation of companies acquiring credit (CON/2015/45)

ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK. of 12 November 2015. on the regulation of companies acquiring credit (CON/2015/45) EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 12 November 2015 on the regulation of companies acquiring credit (CON/2015/45) Introduction and legal basis On 5 November 2015 the European Central

More information

International Factors Group Model Law of Factoring

International Factors Group Model Law of Factoring Afreximbank Conference - Lusaka Regulatory and Legal Aspects of Factoring & International Factors Group Model Law of Factoring Edward Wilde Solicitor with Squire Patton Boggs Financial Services Team London

More information

Regulated Outsourcing

Regulated Outsourcing Regulated Outsourcing Contents 3 The Luxembourg financial centre 4 Outsourcing in the financial industry 5 The statute of Support PSF 7 Services 9 Benefits of working with a Support PSF The Luxembourg

More information

Authorisation Requirements and Standards for Debt Management Firms

Authorisation Requirements and Standards for Debt Management Firms 2013 Authorisation Requirements and Standards for Debt Management Firms 2 Contents Authorisation Requirements and Standards for Debt Management Firms Contents Chapter Part A: Authorisation Requirements

More information

FIRST DATA CORPORATION SUMMARY: BINDING CORPORATE RULES FOR DATA PRIVACY AND PROTECTION

FIRST DATA CORPORATION SUMMARY: BINDING CORPORATE RULES FOR DATA PRIVACY AND PROTECTION FIRST DATA CORPORATION SUMMARY: BINDING CORPORATE RULES FOR DATA PRIVACY AND PROTECTION SUMMARY: BINDING CORPORATE RULES FOR DATA PRIVACY AND PROTECTION v 1.3 Supersedes: v 1.2 Summary Owner: Corporate

More information

FIRST DATA CORPORATION PROCESSOR DATA PROTECTION STANDARDS

FIRST DATA CORPORATION PROCESSOR DATA PROTECTION STANDARDS FIRST DATA CORPORATION PROCESSOR DATA PROTECTION STANDARDS As a world leader in electronic commerce and payment services, First Data Corporation and its subsidiaries ( First Data entity or entities ),

More information

Multi-Jurisdictional Study: Cloud Computing Legal Requirements. Julien Debussche Associate January 2015

Multi-Jurisdictional Study: Cloud Computing Legal Requirements. Julien Debussche Associate January 2015 Multi-Jurisdictional Study: Cloud Computing Legal Requirements Julien Debussche Associate January 2015 Content 1. General Legal Framework 2. Data Protection Legal Framework 3. Security Requirements 4.

More information

Acquia Comments on EU Recommendations for Data Processing in the Cloud

Acquia Comments on EU Recommendations for Data Processing in the Cloud Acquia Comments on EU Recommendations for Data Processing in the Cloud Executive Summary On July 1, 2012, European Union (EU) data protection regulators provided guidelines for service providers processing

More information

Basel Committee on Banking Supervision. The Joint Forum. Outsourcing in Financial Services

Basel Committee on Banking Supervision. The Joint Forum. Outsourcing in Financial Services Basel Committee on Banking Supervision The Joint Forum Outsourcing in Financial Services February 2005 THE JOINT FORUM BASEL COMMITTEE ON BANKING SUPERVISION INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS

More information

Binding Corporate Rules for Processing Customer Personal Data (Processor) June 2015

Binding Corporate Rules for Processing Customer Personal Data (Processor) June 2015 Binding Corporate Rules for Processing Customer Personal Data (Processor) June 2015 Binding Corporate Rules for Processing Customer Personal Data (Processor) Introduction These BCRs define the standards

More information

CAYMAN ISLANDS. Supplement No. 5 published with Gazette No. 19 dated 14 September, STATEMENT OF GUIDANCE: OUTSOURCING REGULATED ENTITIES

CAYMAN ISLANDS. Supplement No. 5 published with Gazette No. 19 dated 14 September, STATEMENT OF GUIDANCE: OUTSOURCING REGULATED ENTITIES CAYMAN ISLANDS Supplement No. 5 published with Gazette No. 19 dated 14 September, 2015. STATEMENT OF GUIDANCE: OUTSOURCING REGULATED ENTITIES Statement of Guidance: Outsourcing Regulated Entities 1. STATEMENT

More information

System of Governance

System of Governance CEIOPS-DOC-29/09 CEIOPS Advice for Level 2 Implementing Measures on Solvency II: System of Governance (former Consultation Paper 33) October 2009 CEIOPS e.v. Westhafenplatz 1-60327 Frankfurt Germany Tel.

More information

De Nederlandsche Bank N.V. May 2011. Assessment Framework for Financial Core Infrastructure Business Continuity Management

De Nederlandsche Bank N.V. May 2011. Assessment Framework for Financial Core Infrastructure Business Continuity Management De Nederlandsche Bank N.V. May 2011 Assessment Framework for Financial Core Infrastructure Business Continuity Management Contents INTRODUCTION... 3 BUSINESS CONTINUITY MANAGEMENT STANDARDS... 5 1. STRATEGY

More information

July 2014. Handbook of Prudential Requirements for Investment Intermediaries. Page 0 of 12 Page 0 of 12

July 2014. Handbook of Prudential Requirements for Investment Intermediaries. Page 0 of 12 Page 0 of 12 July 2014 Handbook of Prudential Requirements for Investment Intermediaries Page 0 of 12 Page 0 of 12 Handbook of Prudential Requirements for Investment Intermediaries Contents Table of Contents Introduction

More information

MiFID II/MiFIR series

MiFID II/MiFIR series Financial institutions Energy Infrastructure, mining and commodities Transport Technology and innovation Life sciences and healthcare MiFID II/MiFIR series Impact on commodities and commodity derivatives

More information

Contracting for International Outsourcing

Contracting for International Outsourcing Legal Voice: Contracting for International Outsourcing by Brad Peterson and Mark Prinsley; Mayer, Brown, Rowe & Maw International outsourcing occurs where a customer turns over responsibility for a function

More information

Outsourcing. FSA Regulated firms (including offshore outsourcing) Contents. March 2004

Outsourcing. FSA Regulated firms (including offshore outsourcing) Contents. March 2004 Outsourcing FSA Regulated firms (including offshore outsourcing) March 2004 Contents 2. Introduction 2. How do the regulations impact an outsourcing? 3. Prudential Sourcebooks 4. Service Level Agreements

More information

IIA Luxembourg January 25, 2008

IIA Luxembourg January 25, 2008 How internal ICAAP. audit shall concretely address the IIA Luxembourg January 25, 2008 This presentation is incomplete without the accompanying discussion. Agenda What is the ICAAP? L. Berliner Role of

More information

Accomplishment of the Colleges Action Plan for 2013 and establishment of the Colleges Action Plan for 2014

Accomplishment of the Colleges Action Plan for 2013 and establishment of the Colleges Action Plan for 2014 Accomplishment of the Colleges Action Plan for 2013 and establishment of the Colleges Action Plan for 2014 Assessment of the Colleges Action Plan for 2013 Promoting and monitoring colleges in 2013 EBA

More information

EBA Guidelines on Internal Governance (GL 44)

EBA Guidelines on Internal Governance (GL 44) EBA Guidelines on Internal Governance (GL 44) London, 27 September 2011 1 Contents I. Executive Summary... 3 II. Background and rationale... 7 1. Importance of internal governance... 7 2. Purpose and scope

More information

OVERVIEW. stakeholder engagement mechanisms and WP29 consultation mechanisms respectively.

OVERVIEW. stakeholder engagement mechanisms and WP29 consultation mechanisms respectively. Joint work between experts from the Article 29 Working Party and from APEC Economies, on a referential for requirements for Binding Corporate Rules submitted to national Data Protection Authorities in

More information

OUTSOURCING OF BANKING ACTIVITIES; EMERGING TRENDS AND CHALLENGES

OUTSOURCING OF BANKING ACTIVITIES; EMERGING TRENDS AND CHALLENGES OUTSOURCING OF BANKING ACTIVITIES; EMERGING TRENDS AND CHALLENGES By K.K.L. Piyasena BACKGROUND Banks traditionally have been major proponents of outsourcing. Although the banking industry was using outsourcing

More information

Guidelines on the Application of the Supervisory Review Process under Pillar 2 (CP03 revised)

Guidelines on the Application of the Supervisory Review Process under Pillar 2 (CP03 revised) 25 January 2006 Guidelines on the Application of the Supervisory Review Process under Pillar 2 (CP03 revised) Table of contents Executive Summary...2 Chapter 1: Introduction...4 Chapter 2. Guidance for

More information

EVALUATION OF THE INVESTMENT COMPENSATION SCHEME DIRECTIVE DG INTERNAL MARKET AND SERVICES EXECUTIVE REPORT AND RECOMMENDATIONS

EVALUATION OF THE INVESTMENT COMPENSATION SCHEME DIRECTIVE DG INTERNAL MARKET AND SERVICES EXECUTIVE REPORT AND RECOMMENDATIONS EVALUATION OF THE INVESTMENT COMPENSATION SCHEME DIRECTIVE DG INTERNAL MARKET AND SERVICES EXECUTIVE REPORT AND RECOMMENDATIONS 1. BACKGROUND Directive 97/9/EC, known as the Investment Compensation Scheme

More information

MEDIA RELEASE. IOSCO reports on business continuity plans for trading venues and intermediaries

MEDIA RELEASE. IOSCO reports on business continuity plans for trading venues and intermediaries IOSCO/MR/54/2015 Madrid, 22 December 2015 IOSCO reports on business continuity plans for trading venues and intermediaries The Board of the (IOSCO) today published two reports that seek to enhance the

More information

Personal information, for purposes of this Policy, includes any information which relates to an identified or an identifiable person.

Personal information, for purposes of this Policy, includes any information which relates to an identified or an identifiable person. PART I: INTRODUCTION AND BACKGROUND Purpose This Data Protection Binding Corporate Rules Policy ( Policy ) establishes the approach of Fluor to compliance with European data protection law and specifically

More information

COMPLIANCE GUIDELINE April 2009

COMPLIANCE GUIDELINE April 2009 COMPLIANCE GUIDELINE April 2009 Table of Contents Preamble...3 Introduction...4 Scope...5 Coming into effect and updating...6 1. Compliance management framework...7 2. Compliance monitoring function...8

More information

Align Technology. Data Protection Binding Corporate Rules Controller Policy. 2014 Align Technology, Inc. All rights reserved.

Align Technology. Data Protection Binding Corporate Rules Controller Policy. 2014 Align Technology, Inc. All rights reserved. Align Technology Data Protection Binding Corporate Rules Controller Policy Contents INTRODUCTION 3 PART I: BACKGROUND AND ACTIONS 4 PART II: CONTROLLER OBLIGATIONS 6 PART III: APPENDICES 13 2 P a g e INTRODUCTION

More information

Privacy in the cloud. DNB has indicated that it considers cloud computing a form of outsourcing.

Privacy in the cloud. DNB has indicated that it considers cloud computing a form of outsourcing. Privacy in the cloud computing, and the company concerned is required to submit a risk analysis to DNB. 3 Cloud computing entails the saving, processing and using of company data on the servers of a cloud

More information

Standard 4.1. Establishment and maintenance of internal control and risk management. Regulations and guidelines

Standard 4.1. Establishment and maintenance of internal control and risk management. Regulations and guidelines Standard 4.1 Establishment and maintenance of internal control and risk management Regulations and guidelines THE FINANCIAL SUPERVISION AUTHORITY 4 Capital adequacy and risk management until further notice

More information

Ancillary Services affected by MiFID II - impact on AIFMs and UCITS management companies

Ancillary Services affected by MiFID II - impact on AIFMs and UCITS management companies Ancillary Services affected by MiFID II - impact on AIFMs and UCITS management companies Summary of how MiFID II will apply to EU managers regulated under AIFMD and the UCITS Directive In the context of

More information

International Monetary Fund Washington, D.C.

International Monetary Fund Washington, D.C. 2006 International Monetary Fund June 2006 IMF Country Report No. 06/217 Spain: Financial Sector Assessment Program Technical Note Supervision of Insurance: Alternative Models for an Independent Agency

More information

Senior arrangements, Systems and Controls. Chapter 8. Outsourcing

Senior arrangements, Systems and Controls. Chapter 8. Outsourcing Senior arrangements, Systems and Controls Chapter Outsourcing SYSC : Outsourcing Section.1 : eneral outsourcing requirements.1 eneral outsourcing requirements [Note: ESMA has also issued guidelines under

More information

An overview of UK data protection law

An overview of UK data protection law An overview of UK data protection law Our team Vinod Bange Partner +44 (0)20 7300 4600 v.bange@taylorwessing.com Graham Hann Partner +44 (0)20 7300 4839 g.hann@taylorwessing.com Chris Jeffery Partner +44

More information

BANKING ORDINANCE. Authorization of Virtual Banks. A Guideline issued by the Monetary Authority under Section 16(10)

BANKING ORDINANCE. Authorization of Virtual Banks. A Guideline issued by the Monetary Authority under Section 16(10) BANKING ORDINANCE Authorization of Virtual Banks A Guideline issued by the Monetary Authority under Section 16(10) Introduction 1. This Guideline is issued under section 16(10) of the Banking Ordinance

More information

Governance working group

Governance working group Governance working group Issues paper on trustee and director duties March 2011 PROPOSED REFORM The Government s response to recommendation 2.1 of the Super System Review included in principle support

More information

Advisory Guidelines of the Financial Supervisory Authority. Requirements regarding the arrangement of operational risk management

Advisory Guidelines of the Financial Supervisory Authority. Requirements regarding the arrangement of operational risk management Advisory Guidelines of the Financial Supervisory Authority Requirements regarding the arrangement of operational risk management These Advisory Guidelines have established by resolution no. 63 of the Management

More information

Basel Committee on Banking Supervision. The Joint Forum. Principles for the supervision of financial conglomerates. Consultative document

Basel Committee on Banking Supervision. The Joint Forum. Principles for the supervision of financial conglomerates. Consultative document Basel Committee on Banking Supervision The Joint Forum Principles for the supervision of financial conglomerates Consultative document December 2011 This publication is available on the BIS website (www.bis.org).

More information

How to Run Offshore Management Companies and Funds with Substance and Corporate Governance

How to Run Offshore Management Companies and Funds with Substance and Corporate Governance White Paper Series: How to Run Offshore Management Companies and Funds with Substance and Corporate Governance This white paper series by Laven Financial Services discusses how hedge fund businesses should

More information

IAIS Insurance Core Principle 16

IAIS Insurance Core Principle 16 www.pwc.com Chicago Actuarial Association ORSA Readiness June 19, 2014 IAIS Insurance Core Principle 16 The supervisory regime establishes enterprise risk management requirements for solvency purposes

More information

Outsourcing and third party access

Outsourcing and third party access Outsourcing and third party access This document is part of the UCISA Information Security Toolkit providing guidance on the policies and processes needed to implement an organisational information security

More information

DATA PROCESSING ADDENDUM

DATA PROCESSING ADDENDUM DATA PROCESSING ADDENDUM Last Revised: November 14, 2016 This Data Processing Addendum ( Addendum ) forms part of the master services agreement or terms of use, as applicable (the Agreement ), entered

More information

Information Security Policies. Version 6.1

Information Security Policies. Version 6.1 Information Security Policies Version 6.1 Information Security Policies Contents: 1. Information Security page 3 2. Business Continuity page 5 3. Compliance page 6 4. Outsourcing and Third Party Access

More information

Personal data and cloud computing, the cloud now has a standard. by Luca Bolognini

Personal data and cloud computing, the cloud now has a standard. by Luca Bolognini Personal data and cloud computing, the cloud now has a standard by Luca Bolognini Lawyer, President of the Italian Institute for Privacy and Data Valorization, founding partner ICT Legal Consulting Last

More information

Outsourcing Risk Guidance Note for Banks

Outsourcing Risk Guidance Note for Banks Outsourcing Risk Guidance Note for Banks Part 1: Definitions Guideline 1 For the purposes of these guidelines, the following is meant by: a) outsourcing: an authorised entity s use of a third party (the

More information

EBA/ITS/2016/01. 13 January 2016. Final Report

EBA/ITS/2016/01. 13 January 2016. Final Report EBA/ITS/2016/01 13 January 2016 Final Report Final draft implementing technical standards amending the Commission Implementing Regulation (EU) No 1030/2014 on the uniform formats and date for the disclosure

More information

Strategy, Marketing and Distribution AIFMD Newsbrief

Strategy, Marketing and Distribution AIFMD Newsbrief www.pwc.lu/aifm Strategy, Marketing and Distribution AIFMD Newsbrief A closer look at the impact of AIFMD on how managers market and distribute their funds April 2013 Introduction On 19 December 2012 the

More information

PensionsEurope position paper on personal pension products

PensionsEurope position paper on personal pension products March 2014 PensionsEurope position paper on personal pension products About PensionsEurope PensionsEurope represents national associations of pension funds and similar institutions for workplace pensions.

More information

EU Data Protection Directive and U.S. Safe Harbor Framework: An Employer Update. By Stephen H. LaCount, Esq.

EU Data Protection Directive and U.S. Safe Harbor Framework: An Employer Update. By Stephen H. LaCount, Esq. EU Data Protection Directive and U.S. Safe Harbor Framework: An Employer Update By Stephen H. LaCount, Esq. Overview The European Union Data Protection Directive 95/46/EC ( Directive ) went effective in

More information

Application of Data Protection Concepts to Cloud Computing

Application of Data Protection Concepts to Cloud Computing Application of Data Protection Concepts to Cloud Computing By Denitza Toptchiyska Abstract: The fast technological development and growing use of cloud computing services require implementation of effective

More information

Outsourcing: driving efficiency. and growth. Grant Thornton International Business Report 2014

Outsourcing: driving efficiency. and growth. Grant Thornton International Business Report 2014 Outsourcing: driving efficiency and growth Grant Thornton International Business Report 2014 Outsourcing: driving efficiency and growth Contents Introduction Outsourcing today Drivers Encouraging outsourcing

More information

Basel Committee on Banking Supervision. Joint Forum. Principles for the supervision of financial conglomerates

Basel Committee on Banking Supervision. Joint Forum. Principles for the supervision of financial conglomerates Basel Committee on Banking Supervision Joint Forum Principles for the supervision of financial conglomerates September 2012 This publication is available on the BIS website (www.bis.org). Bank for International

More information

* * * Document created on12 February 2013 This translation is for information purposes only 1/12

* * * Document created on12 February 2013 This translation is for information purposes only 1/12 AMF position recommandation 2013-04 AMF guidelines on the concept of third party introducer with regard to the fight against money laundering and terrorist financing Background regulations: Articles L.561-7

More information

EBA/CP/2016/17 28/10/2016. Consultation Paper

EBA/CP/2016/17 28/10/2016. Consultation Paper EBA/CP/2016/17 28/10/2016 Consultation Paper Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and

More information

Data Protection Policy.

Data Protection Policy. Data Protection Policy. Data Protection Policy Foreword 2 Foreword Ladies and Gentlemen, In the information age, we offer customers the means to be always connected, even in their cars. This requires data

More information

Market assessment report: Reuters Transaction Services Limited

Market assessment report: Reuters Transaction Services Limited REPORT 181 Market assessment report: Reuters Transaction Services Limited ARBN 108 137 766 November 2009 About this report This report summarises ASIC s fifth annual assessment of Reuters Transaction Services

More information

Basel II Compliance with Tripwire

Basel II Compliance with Tripwire WHITE paper page 2 page 2 page 3 page 3 page 4 page 4 page 4 page 5 page 6 page 7 Overview What is Basel II? Three Keys to Information Security Under Basel II Mitigating Operational Risk Tracking and Centralizing

More information

Corporate governance weaknesses and room for improvement a CEBS view. Bernd Rummel Member of CEBS Secretariat

Corporate governance weaknesses and room for improvement a CEBS view. Bernd Rummel Member of CEBS Secretariat Corporate governance weaknesses and room for improvement a CEBS view Bernd Rummel Member of CEBS Secretariat Malta Financial Services Authority MALTA 20 21 May 2010 Outline CEBS transformation to the EBA

More information

The Canadian Public Accountability Board ( CPAB ), based on its obligations and authority under Canadian federal and applicable provincial laws; and

The Canadian Public Accountability Board ( CPAB ), based on its obligations and authority under Canadian federal and applicable provincial laws; and MEMORANDUM OF UNDERSTANDING BETWEEN THE CANADIAN PUBLIC ACCOUNTABILITY BOARD AND THE NETHERLANDS A UTHORJTY FOR THE FINANCIAL MARKETS ON COOPERATION AND THE EXCHANGE OF INFORMATION RELATED TO THE OVERSIGHT

More information

PART I GENERAL. Chapter 1. General provisions. Section 1. General scope of application of the Act

PART I GENERAL. Chapter 1. General provisions. Section 1. General scope of application of the Act 1(49) Unofficial translation Amendments up to 258/2013 included 746/2012 Issued in Helsinki on 14 December 2012 Securities Markets Act Pursuant to the decision of Parliament, the following is enacted:

More information

OPINION OF THE EUROPEAN CENTRAL BANK

OPINION OF THE EUROPEAN CENTRAL BANK EN ECB-PUBLIC OPINION OF THE EUROPEAN CENTRAL BANK of 27 May 2014 on public access to specific information concerning the bad loans of certain banks (CON/2014/39) Introduction and legal basis On 11 April

More information

Notification Process for (Re)Insurance Undertakings when Outsourcing Critical or Important Functions or Activities under Solvency II

Notification Process for (Re)Insurance Undertakings when Outsourcing Critical or Important Functions or Activities under Solvency II Functions or Activities 2016 Notification Process for (Re)Insurance Undertakings when Outsourcing Critical or Important Functions or Activities under Solvency II 1 Functions or Activities Contents 1. Background

More information

October CEIOPS-DOC Rev1 30 October 2009

October CEIOPS-DOC Rev1 30 October 2009 CEIOPS-DOC-08-06 Rev1 30 October 2009 Protocol Relating to the Collaboration of the Relevant Competent Authorities of the Member States of the European Union in particular in the Application of the Directive

More information

POLICY FOR MANAGING CONFLICTS OF INTEREST

POLICY FOR MANAGING CONFLICTS OF INTEREST ASSET MANAGEMENT POLICY FOR MANAGING CONFLICTS OF INTEREST FOR UCITS INTRODUCTION Edmond de Rothschild Asset Management Luxembourg, (hereinafter the «Management Company» or EdRAM), conducts its activities

More information

Privacy Implications of Cloud Computing in Israel

Privacy Implications of Cloud Computing in Israel January 2012 Privacy Implications of Cloud Computing in Israel Adv. Naomi Assia Co-chairman of the Data Protection Committee -ITECHLAW www.computer-law.co.il Cloud Computing One widely accepted definition

More information

MiFID II Level 2 and energy trading:

MiFID II Level 2 and energy trading: MiFID II Level 2 and energy trading: How to further specify the ancillary activity exemption in Article 2? 17 April 2015 1. Introduction The undersigned associations believe that open, robust, liquid,

More information

Offshore outsourcing in the EU financial services industry

Offshore outsourcing in the EU financial services industry Offshore outsourcing in the EU financial services industry Georges Pujals 1, OFCE Introduction Offshore outsourcing of services has received an enormous amount of attention in the media and political circles

More information

EBA Guidelines on Internal Governance

EBA Guidelines on Internal Governance EBA Guidelines on Internal Governance Bernd Rummel Policy Expert Regulation, EBA 15 April 2013 Malta 2013 EBA European Banking Authority Contents Guidelines on Internal Governance (GL44) > The Single Rulebook

More information

Prudential Standard CPS 231 Outsourcing

Prudential Standard CPS 231 Outsourcing Prudential Standard CPS 231 Outsourcing Objective and key requirements of this Prudential Standard This Prudential Standard requires that all outsourcing arrangements involving material business activities

More information

Guidelines for the prudential assessment of acquisitions and increases in holdings in the financial sector required by Directive 2007/44/EC

Guidelines for the prudential assessment of acquisitions and increases in holdings in the financial sector required by Directive 2007/44/EC CEBS/2008/214 CEIOPS-3L3-19/08 CESR/08-543b Guidelines for the prudential assessment of acquisitions and increases in holdings in the financial sector required by Directive 2007/44/EC [1] Table of contents

More information

¼ããÀ ããè¾ã ¹ãÆãä ã¼ãîãä ã ããõà ãäìããä ã½ã¾ã ºããñ Ã

¼ããÀ ããè¾ã ¹ãÆãä ã¼ãîãä ã ããõà ãäìããä ã½ã¾ã ºããñ à CIRCULAR CIR/MIRSD/24/2011 December 15, 2011 All intermediaries registered with SEBI Merchant Bankers/Registrars to An issue and Share Transfer Agents/Debenture Trustees/Bankers to An Issue/Underwriters/Credit

More information

Basel Committee on Banking Supervision. Consolidated KYC Risk Management

Basel Committee on Banking Supervision. Consolidated KYC Risk Management Basel Committee on Banking Supervision Consolidated KYC Risk Management October 2004 Table of contents Introduction...4 Global process for managing KYC risks...5 Risk management...5 Customer acceptance

More information

EXTERNAL AUDIT AND RELATION BETWEEN INTERNAL AUDITORS, SUPERVISORY BODY AND EXTERNAL AUDITORS OF THE BANKING SECTOR IN THE REPUBLIC OF MACEDONIA

EXTERNAL AUDIT AND RELATION BETWEEN INTERNAL AUDITORS, SUPERVISORY BODY AND EXTERNAL AUDITORS OF THE BANKING SECTOR IN THE REPUBLIC OF MACEDONIA EXTERNAL AUDIT AND RELATION BETWEEN INTERNAL AUDITORS, SUPERVISORY BODY AND EXTERNAL AUDITORS OF THE BANKING SECTOR IN THE REPUBLIC OF MACEDONIA Blagica Jovanova (blagica.jovanova@ugd.edu.mk), Dushko Josheski

More information

Final Report. ESMA s Technical Advice to the Commission on procedural rules to impose fines and periodic penalty payments to Trade Repositories

Final Report. ESMA s Technical Advice to the Commission on procedural rules to impose fines and periodic penalty payments to Trade Repositories Final Report ESMA s Technical Advice to the Commission on procedural rules to impose fines and periodic penalty payments to Trade Repositories 20 December 2013 ESMA/2013/1965 Date: 20 December 2013 ESMA/2013/1965

More information