There have never been detailed FSA rules on Outsourcing by Investment Firms although rules have been in place for banks and insurance companies for some time (SYSC 3A.9). However, there has always been an overall responsibility for senior management to manage outsourcing properly (SYSC 3.2.4 and Principle 3).

The updated FSA Conduct of Business Rules (COBS), introduced through implementation of the Markets in Financial Instruments Directive (MiFID) on the 1st November 2007, simply bring together ‘good market practice’ on Outsourcing and contain specific detailed rules.

On an ongoing basis, Firms which outsource functions to third party providers need to assess whether they have to make changes to their existing arrangements and take appropriate action.

The course will look at the changes arising from the new requirements, from covering the MiFID definition of Outsourcing to checking and re-arranging existing contracts and service level agreements. Delegates will be provided with information to make appropriate decisions in order to maintain compliance with COBS.