Outsourcing

Overview: 

Outsourcing is widely and increasingly used across the alternative investment management industry. With clear advantages including operational efficiencies and cost-effectiveness, it is unlikely that this trend will slow or reverse in the future.  Regulatory standards on outsourcing and third-party relationships (or their risk management) are set out in primary legislation, principles, rules or guidance issued by the relevant regulatory or supervisory authorities and/or codified supervisory practices.

 

Other relevant workstreams

Operational Resilience

Operational resilience is expected to be a key regulatory focus over the coming years. The aim of regulators is to bring about change in how the finance industry thinks about operational resilience in order to build a more resilient financial system.

Cyber and Technology

In recent years, cyber security has increasingly become the top global risk for business, with regulators and policy-makers also paying increased attention to financial institutions’ cyber security planning.

AIFMD

The European Commission has published a proposal to review the AIFMD. The legislative proposal covers delegation, liquidity risk management, loan funds, investors disclosures, depositaries and regulatory reporting matters.

UCITS

The European Commission has proposed targeted amendments to the UCITS Directive on liquidity management tools, delegation and reporting. The proposals are now being scrutinised by the European Parliament and Council.

Other resources

EU Official Texts on Outsourcing

All of the directives, regulations, amending texts, ESA texts, etc. that apply with respect to outsourcing in Ireland and Luxembourg all in one spot.