REGULATORY GUIDELINES PROVIDE INSIGHT INTO OUTSOURCING. The Canadian IT outsourcing market currently generates approximately $6 billion in annual
|
|
- Dorcas Butler
- 8 years ago
- Views:
Transcription
1 REGULATORY GUIDELINES PROVIDE INSIGHT INTO OUTSOURCING By C. Ian Kyer and Warren Sheffer The Canadian IT outsourcing market currently generates approximately $6 billion in annual revenue with forecasted annual growth of about 10 per cent. 1 However, expansion in outsourcing activity, is not simply relegated to the information technology sector. In fact, the growing number of business operations that organizations are presently choosing to outsource from human resource functions to real estate administration -- seem only to be matched by the growing variety of reasons that such organizations choose to outsource from cost considerations to improved customer relations. Having a clear understanding of the varied reasons behind why one s oganization wants to outsource a particular function, as well as the expectations of doing so, is crucial to a successful redeployment. In this regard, decision-makers are wise to pay heed to the Socratic maxim know thyself prior to undertaking an outsourcing, and to appreciate the fact that outsourcing is not a strategy in and of itself but rather can be part of a good overall corporate strategy. 2 Without such introspective forethought, an organization risks failing to fully realize the significant benefits that can come from an outsourcing arrangement. 1 M.Snell, Outsourcing IT Functions paper presented at Ontario Bar Association conference, March 21, G.Kimball, Outsourcing Business Processes: Building Successful Contracts (March 2003) The Licensing Journal 13.
2 - 2 - It is upon this fundamental principle that the Office of the Superintendent of Financial Institutions (OFSI) 3 has crafted its Guideline for Outsourcing of Business Functions by federally regulated financial institutions (FRFIs). 4 This article explores the Guideline: however, it is not about the OFSI or FRFIs per se. 5 Instead, it is our aim to show how the Guideline can be generally instructive for organizations that are considering outsourcing activities. Accordingly, we will explain the main components of the Guideline with a view to demonstrating how organizations can adopt them as part of a good corporate strategy. The Guideline, while specifically applicable to FRFIs, provides a useful host of considerations and recommendations that all organizations can and should employ before embarking on an outsourcing arrangement. By following the prescriptions of the Guideline, an organization can more clearly identify what it expects to gain from outsourcing one or more of its functions, and in this way can help ensure that it gets what it wants. Overview of the Guideline The Guideline requires FRFIs to develop a risk-management program for outsourcing activities that: 1) establishes an outsourcing risk philosophy; 2) identifies material outsourcing risks, existing or potential, to which the FRFI is exposed; 3) establishes sound and prudent policies 3 OSFI supervises and regulates all banks, and all federally incorporated or registered trust and loan companies, insurance companies, cooperative credit associations, and fraternal benefit societies and pension plans. OFSI draws its authority to regulate from the Office of the Superintendent of Financial Institutions Act. 4 Outsourcing of Business Function by FRFIs, No. B-10, May Interestingly, the Ontario Securities Commission ( OSC ), in connection with its recent continued recognition of TSX Inc. ( TSX ) as a stock exchange, and the recognition of the TSX s parent, TSX Group Inc., as a stock exchange, has mandated that the TSX comply with certain outsourcing rules which share similarities to the provisions of the Guideline.
3 - 3 - governing the risks which arise from outsourcing business functions; and 4) monitors and controls associated risks. 1. Outsourcing Risk Philosophy Establishing an outsourcing risk philosophy involves setting out the objectives of the organization s outsourcing strategy, which may include controlling costs to improving the quality and/or the efficiency of the outsourced function, as well as the parameters for the control of the associated risks. Such risk parameters will be informed by the importance of the function(s) the organization intends to outsource within the context of the organization s overall structure and the organization s ability to absorb losses. This exercise of examining the objectives and risks of outsourcing is an important first step in guiding the organization in contracting with its service provider. 2. Identifying Material Outsourcing Risks (a) Risk/Materiality Assessment and Risk/Materiality Criteria Pursuant to the Guideline, FRFIs are required to evaluate the risk and materiality of existing and proposed outsourcing arrangements in order to determine whether such arrangements are subject to the provisions of the Guideline. Risk and materiality are to be determined against at least six weighted factors (the Guideline Factors ), the weighting of which, may vary depending upon the nature of the function to be outsourced:
4 - 4 - (i) Importance of business activity or function if the function is considered to be critical or important to the major objectives of the FRFI such function is considered material; (ii) Importance of outsourcing arrangement to the business activity if the outsourcing arrangement encompasses more than 25 per cent of the total business, it is considered to be material against this factor; (iii) Size of contractual expenditures if the function exceeds one per cent of the FRFI s net assets it is considered to be material; (iv) Potential impact of the outsourcing arrangement on the FRFIs external customers and/or reputation if more than 10 per cent of a FRFI s external customers are directly impacted by the outsourcing or if the FRFI s reputation could be impacted, the arrangement would be considered material; (v) Ability to replace the service provider at reasonable cost and in a timely manner if the service provider could not be replaced within 60 days and at an annual cost not exceeding 120 per cent of the previous year s annual cost, the outsourced function would be considered material; (vi) Likelihood that the service provider may become insolvent/be unable to continue service if there is a reasonable possibility that the service
5 - 5 - provider could be unable to continue service during the term of the contract, the arrangement would be considered material. In the event that a weighted assessment of the Guideline Factors reveals a score of more than 50 out of 100 (a Positive Assessment ), the Guideline s provisions on mitigating the risks associated with outsourcing are to govern the FRFI s outsourcing arrangement. For non-frfis, simply being aware of the Guideline Factors can be useful. However, more important is the development of awareness of the Guidelines provisions on mitigating risks, to which we now turn. 3. Sound and Prudent Policies Governing the Risks A FRFI that has completed a Positive Assessment must ensure that the following provisions designed to mitigate risk are established in respect of its planned outsourcing arrangement. (i) Approval Authorities OFSI takes the position that clearly defined and appropriate levels of authority for approval are required to help ensure prudent outsourcing decisions. Accordingly, OFSI states in the Guideline that delegation of authority must be clearly documented setting out, among other things, the positions or committees to whom authority is delegated and the scope of such authority. (ii) Capability/Expertise of Service Provider OFSI stipulates two components upon which the FRFI must assess its service provider. First, the FRFI must ensure through its own due diligence that its proposed
6 - 6 - service provider has sufficient capability and expertise to undertake the outsourced function. OFSI states that the FRFI should consider the service provider s experience, business strategy, human resource policies and service philosophy. Second, the FRFI must satisfy itself that its proposed service provider has sufficient financial resources to provide the contracted services on an ongoing basis. OFSI recommends that this be evaluated by reviewing publicly available financial information as well as internal audit reports of the service provider. (iii) Acceptable Contract for Services OFSI requires that service contracts contain provisions on the following key elements: Service Levels and Performance Standards; Audit Rights and Monitoring Procedures; Contingency Planning; Defaults and Termination; Pricing; Resolution of Differences; and Confidentiality and Security. 6 Service Levels and Performance Standards OFSI suggests that the FRFI s service provider contract address the frequency, content and format of the service being provided; time schedules for receipt and delivery of work, including processing priorities; performance benchmarks, some of which may trigger an event of default if not redressed, and the associated measurement system. Moreover, OFSI makes the important observation that contract provisions should be
7 - 7 - sufficiently flexible to accommodate both new services and modifications to existing processes. Audit Rights and Monitoring Procedures OFSI requires that the FRFI monitor the outsourced business function, which it recommends may take the form of regular and formal meetings with the service provider and/or periodic reviews to measure the success of the outsourced function. OFSI states that responsibility for auditing contracts must be assigned to an internal auditor who has sufficient expertise to identify issues related to the business function or to a qualified member of management not involved in the outsourced business function. Contingency Planning OFSI dictates that the FRFI s service provider contract must provide for backup records and facilities. It recommends that a disaster plan detailing how the outsourced function will continue in a disaster be contained in the service provider contract. Defaults and Termination OFSI notes in the Guideline that there can be significant risks associated with contract defaults and/or termination. Accordingly, OFSI states that termination possibilities must be contemplated in the contract, indicating which party can bring about contract termination, when it is triggered, how it is exercised, the right and 6 OFSI also requires that service contracts contain financial reporting and retention of records requirements, which will not be discussed here.
8 - 8 - responsibilities of each party, and what sort of transition assistance must be made available. Pricing With respect to this contractual element, OFSI suggest that [w]hen comparing the pricing of competing outsourcing proposals, FRFIs should measure long term stability and viability against potential shortterm cost savings. OFSI also suggests developing mechanisms for the sharing of unanticipated gains or short falls and incentives for reducing costs. Resolution of Differences OFSI advocates incorporating resolution mechanisms that include provisions covering service levels during a dispute, escalation procedures, and differences resolvable by arbitration, mediation and other means of dispute resolution. Confidentiality and Security OFSI states that a FRFI s service provider contract must address which party has responsibility for protection mechanisms, the scope of the information to be protected, and the powers of each party to change security procedures and requirements. 4. Monitoring and Controlling Associated Risks A FRFI s risk management program is also to address the monitoring and control of the risks that its outsourcing policies are designed to mitigate. OFSI supports a FRFIs use of audits to ensure, for example, that its risk-management policies and procedures for outsourcing are being
9 - 9 - followed internally and externally and that personnel involved in outsourcing risk-management have the expertise required to make effective outsourcing decisions. In this vein, OFSI also recommends the periodic review of a FRFI s risk management program by the FRFI s Board of Directors. There is no magical outsourcing formula that will guarantee the success of an outsourcing arrangement. However, taking notice and consideration of the foregoing Guideline prescriptions can help an organization be clear on its outsourcing needs and expectations.
Managing Outsourcing Arrangements
Guidance Note GGN 221.1 Managing Outsourcing Arrangements 1. This Guidance Note provides further detail on the requirements for managing material outsourcing arrangements (refer Prudential Standard GPS
More informationGuidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004
Guidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004 1. INTRODUCTION Financial institutions outsource business activities, functions and processes
More informationGuideline. Outsourcing of Business Activities, Functions and Processes. Category: Sound Business and Financial Practices
Guideline Subject: Category: Sound Business and Financial Practices No: B-10 Date: May 2001 Revised: December 2003 Revised: 1 1. Introduction Financial institutions outsource business activities, functions
More informationOUTSOURCING 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 informationRevised May 2007. Corporate Governance Guideline
Revised May 2007 Corporate Governance Guideline Table of Contents 1. INTRODUCTION 1 2. PURPOSES OF GUIDELINE 1 3. APPLICATION AND SCOPE 2 4. DEFINITIONS OF KEY TERMS 2 5. FRAMEWORK USED BY CENTRAL BANK
More informationPrudential Practice Guide
Prudential Practice Guide PPG 231 Outsourcing October 2006 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice guide is not legal advice and users
More informationRegulatory Compliance Management (RCM) (formerly Legislative Compliance Management (LCM))
Guideline Subject: Category: (RCM) (formerly Legislative Compliance Management (LCM)) Sound Business & Financial Practices No: E-13 Date: November 2014 I. Purpose and Scope of the Guideline The purpose
More informationGuidance Note: Corporate Governance - Board of Directors. March 2015. Ce document est aussi disponible en français.
Guidance Note: Corporate Governance - Board of Directors March 2015 Ce document est aussi disponible en français. Applicability The Guidance Note: Corporate Governance - Board of Directors (the Guidance
More informationGUIDANCE FOR MANAGING THIRD-PARTY RISK
GUIDANCE FOR MANAGING THIRD-PARTY RISK Introduction An institution s board of directors and senior management are ultimately responsible for managing activities conducted through third-party relationships,
More informationCredit Union Liability with Third-Party Processors
World Council of Credit Unions Annual Conference Credit Union Liability with Third-Party Processors Andrew (Andy) Poprawa CEO, Deposit Insurance Corporation of Ontario Canada 1 Credit Union Liability with
More information-17 2015 OUTSOURCING POLICY
Outsourcing Policy TABLE OF CONTENTS EXECUTIVE SUMMARY... 3 Aim & Introduction... 3 POLICY PARAMETERS... 4 Key Terms... 4 Outsourcing Agreement Requirements... 5 MATERIAL OUTSOURCING AGREEMENTS... 6 Board
More informationGood Practice Checklist
Investment Governance Good Practice Checklist Governance Structure 1. Existence of critical decision-making bodies e.g. Board of Directors, Investment Committee, In-House Investment Team, External Investment
More informationData Management: Considerations for Integrating Compliance Requirements At Home and Abroad. Toronto, Ontario June 14, 2005
Data Management: Considerations for Integrating Compliance Requirements At Home and Abroad Toronto, Ontario June 14, 2005 Outsourcing Update: New Contractual Options and Risks Lisa K. Abe June 14, 2005
More informationVendor Management Best Practices
23 rd Annual and One Day Seminar Vendor Management Best Practices Catherine Bruder CPA, CITP, CISA, CISM, CTGA Michigan Texas Florida Insight. Oversight. Foresight. SM Doeren Mayhew Bruder 1 $100 billion
More informationFINANCIAL ASSESSMENT CRITERIA (The Assessment Criteria should be read in conjunction with OSFI s Supervisory Framework)
ROLE OF Financial is an independent function responsible for ensuring the timely and accurate reporting and in-depth analysis of the operational results of the operating units (including business lines)
More informationPRINCIPLES ON OUTSOURCING OF FINANCIAL SERVICES FOR MARKET INTERMEDIARIES
PRINCIPLES ON OUTSOURCING OF FINANCIAL SERVICES FOR MARKET INTERMEDIARIES TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS FEBRUARY 2005 Preamble The IOSCO Technical Committee
More informationMEMORANDUM. Date: October 28, 2013. Federally Regulated Financial Institutions. Subject: Cyber Security Self-Assessment Guidance
MEMORANDUM Date: October 28, 2013 To: Federally Regulated Financial Institutions Subject: Guidance The increasing frequency and sophistication of recent cyber-attacks has resulted in an elevated risk profile
More informationSystem 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 informationSolvency Assessment and Management: Pillar II Sub Committee Governance Task Group Discussion Document 81 (v 3)
Solvency Assessment and Management: Pillar II Sub Committee Governance Task Group Discussion Document 81 (v 3) Governance, Risk Management, and Internal Controls INTERIM REQUIREMENTS CONTENTS 1. INTRODUCTION
More informationCORPORATE GOVERNANCE GUIDELINES
CORPORATE GOVERNANCE GUIDELINES The term "Corporation" refers to Pembina Pipeline Corporation, the term "Pembina" refers collectively to the Corporation and all entities controlled by the Corporation,
More informationPOLICY STATEMENT AND GUIDANCE NOTES ON: (1) OUTSOURCING; AND
POLICY STATEMENT AND GUIDANCE NOTES ON: (1) OUTSOURCING; AND (2) DELEGATION BY JERSEY CERTIFIED FUNDS AND FUND SERVICES BUSINESSES Issued: May 2011 Contents CONTENTS Contents...3 Background...4 1 Scope...
More informationPart E: Contract management
Overview Part A: Strategic assessment Part B1: Business case developing the business case Part B2: Business case procurement options Part B3: Business case funding and financing options Part C: Project
More informationMORUMBI RESOURCES LTD. CORPORATE GOVERNANCE GUIDELINES
1 INTRODUCTION MORUMBI RESOURCES LTD. CORPORATE GOVERNANCE GUIDELINES 1.1 The Board of Directors (the Board ) of Morumbi Resources Ltd. ( Morumbi ) is committed to adhering to the highest possible standards
More informationFinansinspektionen s Regulatory Code
Finansinspektionen s Regulatory Code Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished for information purposes only and is not itself a legal document. Finansinspektionen's
More informationBOARD OF DIRECTORS MANDATE
BOARD OF DIRECTORS MANDATE Board approved: May 7, 2014 This mandate provides the terms of reference for the Boards of Directors (each a Board ) of each of Economical Mutual Insurance Company ( Economical
More informationGuide for Incorporating Banks and Federally Regulated Trust and Loan Companies
Instruction Guide Subject: Guide for Incorporating Banks and Federally Regulated Trust and Loan Companies Category: Application Guides Date: October 2001 August 2004 (Revised) May 2013 (Revised) June 2015
More informationStatement of Guidance: Outsourcing All Regulated Entities
Statement of Guidance: Outsourcing All Regulated Entities 1. STATEMENT OF OBJECTIVES 1.1. 1.2. 1.3. 1.4. This Statement of Guidance ( Guidance ) is intended to provide guidance to regulated entities on
More informationMandatory Provident Fund Schemes Authority COMPLIANCE STANDARDS FOR MPF APPROVED TRUSTEES. First Edition July 2005. Hong Kong
Mandatory Provident Fund Schemes Authority COMPLIANCE STANDARDS FOR MPF APPROVED TRUSTEES First Edition July 2005 Hong Kong Contents Glossary...2 Introduction to Standards...4 Interpretation Section...6
More informationRecognised Investment Exchanges. Chapter 2. Recognition requirements
Recognised Investment Exchanges Chapter Recognition REC : Recognition Section.3 : Financial resources.3 Financial resources.3.1 UK Schedule to the Recognition Requirements Regulations, Paragraph 1 (1)
More informationCategory: Regulatory & Legislative NOTICE* Business and Powers Ownership Interests in Commodities. No: 2013 01 Issued: January 2013
Advisory Category: Regulatory & Legislative NOTICE* Subject: Business and Powers Ownership Interests in Commodities No: 2013 01 Issued: January 2013 Introduction: Federally regulated financial institutions
More informationSUPERVISORY AND REGULATORY GUIDELINES: PU48-0809 GUIDELINES ON MINIMUM STANDARDS FOR THE OUTSOURCING OF MATERIAL FUNCTIONS
SUPERVISORY AND REGULATORY GUIDELINES: PU48-0809 ISSUED: 4 th May 2004 REVISED: 27 th August 2009 GUIDELINES ON MINIMUM STANDARDS FOR THE OUTSOURCING OF MATERIAL FUNCTIONS I. INTRODUCTION The Central Bank
More informationOperational Risk Publication Date: May 2015. 1. Operational Risk... 3
OPERATIONAL RISK Contents 1. Operational Risk... 3 1.1 Legislation... 3 1.2 Guidance... 3 1.3 Risk management process... 4 1.4 Risk register... 7 1.5 EBA Guidelines on the Security of Internet Payments...
More informationManaging General Agents (MGAs) Guideline
Managing General Agents (MGAs) Guideline JUNE 2013 DRAFT FOR COMMENT BC AUTHORIZED LIFE INSURERS www.fic.gov.bc.ca PURPOSE This draft guideline outlines best practices that the Financial Institutions Commission
More informationAPPLICATION OF THE KING III REPORT ON CORPORATE GOVERNANCE PRINCIPLES
APPLICATION OF THE KING III REPORT ON CORPORATE GOVERNANCE PRINCIPLES Ethical Leadership and Corporate Citizenship The board should provide effective leadership based on ethical foundation. that the company
More informationThe Canadian Public Venture Exchange S and E
APPENDIX A Draft Recognition Order Conditions Definitions 1. For the purposes of this order: Exchange means the TSX Venture Exchange Inc.; Maple clearing agency means any clearing agency owned or operated
More informationGUIDELINE 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 informationGUIDELINES ON OUTSOURCING ARRANGEMENTS
GUIDELINES ON OUTSOURCING ARRANGEMENTS STATE BANK OF PAKISTAN BANKING POLICY & REGULATIONS DEPARTMENT KARACHI CONTENTS Page No I INTRODUCTION:... 1 II APPLICABILITY:... 1 III DEFINITION OF OUTSOURCING:...
More informationMANDATE OF THE BOARD OF DIRECTORS STINGRAY DIGITAL GROUP INC.
MANDATE OF THE BOARD OF DIRECTORS STINGRAY DIGITAL GROUP INC. MANDATE OF THE BOARD OF DIRECTORS OF STINGRAY DIGITAL GROUP INC. GENERAL 1. PURPOSE AND RESPONSIBILITY OF THE BOARD By approving this Mandate,
More informationCOMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Expectations
Additional Tools: COMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Expectations Class 2 Institutions February 2014 Ce document est également disponible en français. COMMERCIAL LENDING POLICY DEVELOPMENT
More informationCOMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Considerations
DRAFT FOR COMMENT Additional Tools: COMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Considerations Class 2 Institutions April 2013 This document is also available in French. COMMERCIAL CREDIT POLICY
More informationINSURANCE ACT 2008 CORPORATE GOVERNANCE CODE OF PRACTICE FOR REGULATED INSURANCE ENTITIES
SD 0880/10 INSURANCE ACT 2008 CORPORATE GOVERNANCE CODE OF PRACTICE FOR REGULATED INSURANCE ENTITIES Laid before Tynwald 16 November 2010 Coming into operation 1 October 2010 The Supervisor, after consulting
More informationGUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES
20 th February, 2013 To Insurance Companies Reinsurance Companies GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES These guidelines on Risk Management and Internal
More informationPRINCIPLES ON OUTSOURCING OF FINANCIAL SERVICES FOR MARKET INTERMEDIARIES
PRINCIPLES ON OUTSOURCING OF FINANCIAL SERVICES FOR MARKET INTERMEDIARIES A CONSULTATION REPORT OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS STANDING COMMITTEE 3 ON MARKET INTERMEDIARIES
More informationGUIDANCE NOTE FOR DEPOSIT-TAKERS. Operational Risk Management. March 2012
GUIDANCE NOTE FOR DEPOSIT-TAKERS Operational Risk Management March 2012 Version 1.0 Contents Page No 1 Introduction 2 2 Overview 3 Operational risk - fundamental principles and governance 3 Fundamental
More information¼ããÀ ããè¾ã ¹ãÆãä ã¼ãîãä ã ããõà ãäìããä ã½ã¾ã ºããñ Ã
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 informationMISSION VALUES. The guide has been printed by:
www.cudgc.sk.ca MISSION We instill public confidence in Saskatchewan credit unions by guaranteeing deposits. As the primary prudential and solvency regulator, we promote responsible governance by credit
More informationEclipx Group Limited Risk Management Policy
Eclipx Group Limited Risk Management Policy Date approved: 26 March 2015 Table of Contents 1. Background... 3 1.1 Overview... 3 1.2 Purpose... 3 1.3 Board responsibility... 3 2. Key principles and concepts...
More informationGUIDANCE NOTE OUTSOURCING OF FUNCTIONS BY ENTITIES LICENSED UNDER THE PROTECTION OF INVESTORS (BAILIWICK OF GUERNSEY) LAW, 1987
GUIDANCE NOTE OUTSOURCING OF FUNCTIONS BY ENTITIES LICENSED UNDER THE PROTECTION OF INVESTORS (BAILIWICK OF GUERNSEY) LAW, 1987 CONTENTS Page 1. Introduction 3-4 2. The Commission s Policy 5 3. Outsourcing
More informationAPPLICATION OF KING III CORPORATE GOVERNANCE PRINCIPLES 2014
WOOLWORTHS HOLDINGS LIMITED CORPORATE GOVERNANCE PRINCIPLES 2014 CORPORATE GOVERNANCE PRINCIPLES 2014 CORPORATE GOVERNANCE PRINCIPLES 2014 This table is a useful reference to each of the King III principles
More informationSPECIAL ISSUES IN CANADIAN IT OUTSOURCING BY C. IAN KYER AND JOHN BEARDWOOD
SPECIAL ISSUES IN CANADIAN IT OUTSOURCING BY C. IAN KYER AND JOHN BEARDWOOD INTRODUCTION For an American service provider, doing an outsourcing in Canada is like a fan of the National League Chicago Cubs
More informationFMCF certification checklist 2014-15 (incorporating the detailed procedures) 2014-15 certification period. Updated May 2015
FMCF certification checklist 2014-15 (incorporating the detailed procedures) 2014-15 certification period Updated May 2015 The Secretary Department of Treasury and Finance 1 Treasury Place Melbourne Victoria
More informationFRAMEWORK FOR INTRODUCTION OF NEW PRODUCTS...5 SUPERVISORY EXPECTATIONS ON PRODUCT RISK MANAGEMENT AND FAIR TREATMENT OF CONSUMERS...
PART A. INTRODUCTION...1 1. Overview of the Guidelines... 1 2. Legal Provisions... 2 3. Scope... 2 PART B. FRAMEWORK FOR INTRODUCTION OF NEW PRODUCTS...5 4. General Conditions... 5 5. General Exception...
More informationMorgan Stanley. Policy for the Management of Third Party Residential Mortgage Servicing Providers
Morgan Stanley Policy for the Management of Third Party Residential Mortgage Servicing Providers Title Policy for the Management of Third Party Residential Mortgage Servicing Providers Effective Date Owner
More informationBridging the Purchase Price Gap in Business Acquisitions
Bridging the Purchase Price Gap in Business Acquisitions Curt P. Creely and Michael D. James, Foley & Lardner LLP Many transactional attorneys and other dealmakers have experienced the frustration of being
More informationINSURANCE LAWS AMENDMENT BILL
REPUBLIC OF SOUTH AFRICA INSURANCE LAWS AMENDMENT BILL -------------------------------- (As introduced in the National Assembly (proposed section 75); explanatory summary of Bill published in Government
More informationObjective and key requirements of this Prudential Standard
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 informationRequirements made under the Intermediaries Byelaw
Chapter 2 Requirements made under the Intermediaries Byelaw Section 1 Delegated Underwriting Registers of coverholders and registered binding authorities Part B of the Intermediaries Byelaw Format and
More informationFinancial 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 informationSUPERVISION GUIDELINE
G u i d e l i n e s o n O u t s o u r c i n g P a g e 1 SUPERVISION GUIDELINE G10: GUIDELINES ON OUTSOURCING Issued To All Licensed Financial Institutions G u i d e l i n e s o n O u t s o u r c i n g
More informationCommon Student Information System for Schools and School Boards. Project Summary
for Schools and School Boards May 2007 Table of Contents 1. Executive Summary...... 3 2. Project Background, Rationale, Benefits and Scope... 4 3. Procurement Process... 8 4. The Final Agreement. 10 5.
More informationWhite Paper on Financial Institution Vendor Management
White Paper on Financial Institution Vendor Management Virtually every organization in the modern economy relies to some extent on third-party vendors that facilitate business operations in a wide variety
More informationThe Town of Fort Frances
The Town of Fort Frances Long-Term Capital Financial Plan POLICY Resolution Number: 391 (Consent) 12/09 SECTION ADMINISTRATION AND FINANCE NEW: December 2009 REVISED: Supercedes Resolution No. Policy Number:
More information4-05-30 Applications Maintenance Outsourcing Joseph Judenberg
4-05-30 Applications Maintenance Outsourcing Joseph Judenberg Payoff Appropriately structured arrangements for systems maintenance outsourcing can yield significant benefits to many organizations. This
More informationVendor Management Compliance Top 10 Things Regulators Expect
Vendor Management Compliance Top 10 Things Regulators Expect Paul M. Phillips, CFA Attorney, Adams and Reese Pamela T. Rodriguez, AAP, CIA, CISA EVP, Risk Management & Education, EastPay 2014 EastPay.
More informationGUIDANCE NOTE ON OUTSOURCING
GN 14 GUIDANCE NOTE ON OUTSOURCING Office of the Commissioner of Insurance Contents Page I. Introduction.. 1 II. Application...... 1 III. Interpretation.... 2 IV. Legal and Regulatory Obligations... 3
More informationTo: Our Clients and Friends March 25, 2014
Financial Services Group To: Our Clients and Friends March 25, 2014 A Significant Change Is Occurring Regarding Regulatory Oversight of Banks and Their Third Party Relationships. Both Banks and their Vendors
More informationOCC 98-3 OCC BULLETIN
To: Chief Executive Officers and Chief Information Officers of all National Banks, General Managers of Federal Branches and Agencies, Deputy Comptrollers, Department and Division Heads, and Examining Personnel
More informationSTELLENBOSCH MUNICIPALITY
STELLENBOSCH MUNICIPALITY APPENDIX 9 BORROWING POLICY 203/204 TABLE OF CONTENTS. PURPOSE... 3 2. OBJECTIVES... 3 3. DEFINITIONS... 3 4. SCOPE OF THE POLICY... 4 5. LEGISLATIVE FRAMEWORK AND DELEGATION
More informationVendor Risk Management in the New Regulatory Environment. kpmg.com
Vendor Risk Management in the New Regulatory Environment kpmg.com Vendor Risk Management in the New Regulatory Environment 2 Vendor Risk Management in the New Regulatory Environment Background Regulators
More informationForeign Exchange. Prime Brokerage. Product Overview and Best Practice Recommendations
Foreign Exchange Prime Brokerage Product Overview and Best Practice Recommendations 33 Foreign Exchange Prime Brokerage Product Overview and Best Practice Recommendations Overview Foreign exchange prime
More informationAUDIT COMMITTEE CHARTER THE BOARD OF DIRECTORS OF ALLIANCE SEMICONDUCTOR CORPORATION
AUDIT COMMITTEE CHARTER THE BOARD OF DIRECTORS OF ALLIANCE SEMICONDUCTOR CORPORATION PURPOSE The Audit Committee (the Committee ) of Alliance Semiconductor Corporation (the Company ) is chartered to oversee
More informationAdvisory 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 informationNATIONAL BANK OF ETHIOPIA MICROFINANCE INSTITUIONS SUPERVISION DIRECTORATE. RISK MANAGEMENT GUIDLEIES for MICROFINANCE INSTITITTIONS (FINAL)
NATIONAL BANK OF ETHIOPIA MICROFINANCE INSTITUIONS SUPERVISION DIRECTORATE RISK MANAGEMENT GUIDLEIES for MICROFINANCE INSTITITTIONS (FINAL) September 2010 Table of Contents Page 1. General Back Ground
More informationALASKA PERMANENT FUND CORPORATION
ALASKA PERMANENT FUND CORPORATION RESOLUTION OF THE BOARD OF TRUSTEES OF THE ALASKA PERMANENT FUND CORPORATION SETTING OUT INVESTMENT POLICIES RELATING TO REAL ESTATE INVESTMENTS RESOLUTION 04-07 (This
More informationAPRA S FIT AND PROPER REQUIREMENTS
APRA S FIT AND PROPER REQUIREMENTS Consultation Paper Australian Prudential Regulation Authority PREAMBLE APRA was created out of the Government s financial sector reforms that were implemented as a result
More informationREGULATORY IMPLICATIONS OF CLOUD COMPUTING. Stephen B. Kerr Partner Financial Institutions Group
REGULATORY IMPLICATIONS OF CLOUD COMPUTING Stephen B. Kerr Partner Financial Institutions Group 1 Outline Outsourcing history of Canadian regulatory guidance with respect to outsourcing generally Recent
More informationOutsourcing. 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 informationToronto, Ontario Tuesday, June 9, 2009 CHECK AGAINST DELIVERY. For additional information contact:
Remarks by Superintendent Julie Dickson Office of the Superintendent of Financial Institutions Canada (OSFI) to the 2009 OSFI Risk Management Seminar for Life Insurance Companies Toronto, Ontario Tuesday,
More informationPrudential Practice Guide
Prudential Practice Guide LPG 240 Life Insurance Risk and Life Reinsurance Management March 2007 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice
More informationGuideline. Commercial Lending Criteria. No: E-2 Date: June 1992
Canada Bureau du surintendant des institutions financières Canada 255 Albert Street 255, rue Albert Ottawa, Canada Ottawa, Canada K1A 0H2 K1A 0H2 Guideline Subject: No: E-2 Date: June 1992 This guideline
More informationSolvency II Detailed guidance notes
Solvency II Detailed guidance notes March 2010 Section 1 - System of governance Section 1: System of Governance Overview This section outlines the Solvency II requirements for an effective system of governance,
More informationCONTRACT MANAGEMENT POLICY
CONTRACT MANAGEMENT POLICY Section Finance Approval Date 25/08/2014 Approved by Directorate Next Review Aug 2016 Responsibility Chief Operating Officer Key Evaluation Question 6 PURPOSE The purpose of
More informationPOV on Draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs
POV on Draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs April 2015 For private circulation only Draft Guidelines on Managing Risks and Code of Conduct
More informationContracting for Services
Contracting for Services A National State Auditors Association Best Practices Document Published by the National State Auditors Association Copyright 2003 by the National State Auditors Association. All
More informationHow To Manage A Corporation
HUMAN RESOURCES AND COMPENSATION COMMITTEE MANDATE The Human Resources and Compensation Committee (the Committee ) is a committee of the Board of Directors (the Board ) of Cenovus Energy Inc. ( Cenovus
More informationTHE BANK OF NOVA SCOTIA. Corporate Governance Policies
Corporate Governance Policies June 2015 PAGE 1 Introduction Corporate governance refers to the oversight mechanisms and the way in which The Bank of Nova Scotia (the Bank ) is governed. The Board of Directors
More informationMODEL STANDARDS OF CONDUCT
MODEL STANDARDS OF CONDUCT FOR MEDIATORS AMERICAN ARBITRATION ASSOCIATION (ADOPTED SEPTEMBER 8, 2005) AMERICAN BAR ASSOCIATION (APPROVED BY THE ABA HOUSE OF DELEGATES AUGUST 9, 2005) ASSOCIATION FOR CONFLICT
More informationJuly 25, 2014. Dear Sirs/Mesdames:
July 25, 2014 British Columbia Securities Commission Alberta Securities Commission Financial and Consumer Affairs Authority of Saskatchewan Manitoba Securities Commission Ontario Securities Commission
More informationAlberta Pensions Services Corporation. Business Plan
Alberta Pensions Services Corporation Business Plan 2010-2012 Table of Contents Executive Summary...3 Accountability Statement...5 Our Commitment...6 Overview of the Corporation...7 Five-Year Strategic
More informationwww.pwc.com/us/insurance The role and function of insurance company board of directors risk committees
www.pwc.com/us/insurance The role and function of insurance company board of directors risk committees Table of contents The role and function of insurance company board of directors risk committees 2
More informationFUNCTION (X) INC. (the "Company") COMPENSATION COMMITTEE CHARTER
FUNCTION (X) INC. (the "Company") COMPENSATION COMMITTEE CHARTER Purpose Composition The purpose of the Compensation Committee (the Committee ) shall be as follows: 1. To discharge the responsibilities
More informationProposed Principles to be addressed in APES GN 20 Outsourced Accounting Services
Proposed Principles to be addressed in APES GN 20 Outsourced Accounting Services Roles and Responsibilities The proposed Guidance Note 20 Outsourced Accounting Services (GN 20) will set out the various
More informationGuideline. Large Exposure Limits. Category: Prudential Limits and Restrictions. No: B-2 Date: August 2003. I. Introduction
Canada Bureau du surintendant des institutions financières Canada 255 Albert Street 255, rue Albert Ottawa, Canada Ottawa, Canada K1A 0H2 K1A 0H2 www.osfi-bsif.gc.ca Guideline Subject: Category: Prudential
More informationDEFENSE RESEARCH INSTITUTE RECOMMENDED CASE HANDLING GUIDELINES FOR INSURERS
DEFENSE RESEARCH INSTITUTE RECOMMENDED CASE HANDLING GUIDELINES FOR INSURERS I. PREFACE Philosophy [Insurer] expects to work with the Firm and the insured to achieve the best result for the insured in
More informationFirst Nations Wealth Management through Good Governance
FIRST NATIONS FISCAL & WEALTH MANAGEMENT PAPER 3.1 First Nations Wealth Management through Good Governance These materials were prepared by Georgina Villeneuve, MBA, MTI, Vice President, Trust Service,
More informationRISK MANAGEMENT AND COMPLIANCE
RISK MANAGEMENT AND COMPLIANCE Contents 1. Risk management system... 2 1.1 Legislation... 2 1.2 Guidance... 3 1.3 Risk management policy... 4 1.4 Risk management process... 4 1.5 Risk register... 8 1.6
More informationRe: CAPSA Pension Plan Governance Guidelines and Self-Assessment Questionnaire
October 25, 2004 Dear Stakeholder: Re: CAPSA Pension Plan Governance Guidelines and Self-Assessment Questionnaire On behalf of the Canadian Association of Pension Supervisory Authorities (CAPSA), we are
More informationTHE OPTIONS CLEARING CORPORATION BOARD OF DIRECTORS CORPORATE GOVERNANCE PRINCIPLES
THE OPTIONS CLEARING CORPORATION BOARD OF DIRECTORS CORPORATE GOVERNANCE PRINCIPLES The following Corporate Governance Principles have been adopted by the Board of Directors (the Board ) of The Options
More informationAre You Ready for the New Foreclosure Processing Regulations?
Are You Ready for the New Foreclosure Processing Regulations? New regulator guidance provides banks servicing residential mortgages with expectations in effectively assessing foreclosure processing. The
More informationCOMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES
COMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES December 31, 2013 Table of Contents Scope of Application... 3 Capital Structure... 3 Capital Adequacy... 3 Credit Risk... 4 Market Risk...
More information