The Central Bank of Ireland (CBI) has published a Consultation Paper on Cross-Industry Guidance on Outsourcing (CP) which is accompanied by draft Cross-Industry Guidance on Outsourcing (Guidance).
In keeping with the CBI’s themes of “strengthening resilience” and “strengthening consumer protection”, the CBI has sought, through the Guidance, to expand on its expectations for how regulated firms manage their outsourcing risk.
The Guidance follows on from the CBI report on outsourcing by regulated firms across different segments of the financial services sector published in 2018 (2018 Report) (please see our earlier briefing on the 2018 Report here) and the CBI’s industry Outsourcing Conference in April 2019.
The Guidance will support and complement existing sectoral legislation, regulations and guidelines on outsourcing, including cloud services. It also indicates the CBI’s expectations on outsourcing risk management to the boards and senior management of regulated firms and reminds them of their responsibilities.
The consultation period on the Guidance will remain open until 26 July 2021 for interested parties to make submissions. As outsourcing is a key area of continued focus for the CBI, we encourage all regulated firms to carefully read the CP and the Guidance and consider engaging in the consultation process. The CBI proposes to publish the finalised Guidance at an unspecified date in 2021 after its consideration of submissions received.
In this briefing, we review:
- who the Guidance will affect;
- the scope and purpose of the Guidance; and
- the key requirements of the Guidance on outsourcing risk management.
Click below to download our briefing.