GEN 5.3.21 GEN 5.3.21(1) An
Authorised Personwhich outsources any of its functions or activities directly related to Financial Servicesto service providers (including within its Group) is not relieved of its regulatory obligations and remains responsible for compliance with legislation applicable in the DIFC.(2) The outsourced function under this Ruleshall be deemed as being carried out by the Authorised Personitself.(3) An Authorised Personwhich uses such third party providers must ensure that it:(a) has undertaken due diligence in choosing suitable service providers;(b) effectively supervises the outsourced functions or activities; and(c) deals effectively with any act or failure to act by the service provider that leads, or might lead, to a breach of any legislation applicable in the DIFC.
GEN 5.3.21 GuidanceDeleted in accordance with Notice of Amendments to Legislation April 2011 [VER27/02-11]
GEN 5.3.22 GEN 5.3.22(1) An
Authorised Personmust inform the DFSAabout any material outsourcing arrangements.(2) An Authorised Personwhich has a material outsourcing arrangement must:(a) establish and maintain comprehensive outsourcing policies, contingency plans and outsourcing risk management programmes;(b) enter into an appropriate and written outsourcing contract; and(c) ensure that the outsourcing arrangements neither reduce its ability to fulfil its obligations to customers and the DFSA, nor hinder supervision of the Authorised Personby the DFSA.(3) An Authorised Personmust ensure that the terms of its outsourcing contract with each service provider under a material outsourcing arrangement require the service provider to:(a) provide for the provision of information under section 11.1 in relation to the Authorised Personand access to their business premises; and(b) deal in an open and co-operative way with the DFSA.
GEN 5.3.22 Guidance1. An
Authorised Person'soutsourcing arrangements should include consideration of:a. applicable guiding principles for outsourcing in financial services issued by the Joint Forum; orb. any equivalent principles or regulations the Authorised Personis subject to in its home country jurisdiction.2. An outsourcing arrangement would be considered to be material if it is a service of such importance that weakness or failure of that service would cast serious doubt on the Authorised Person'scontinuing ability to remain fit and proper or to comply with DFSAadministered Laws and Rules.Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]