Regulatory Alerts2024-02-07
Joint Standard on Outsourcing by Insurers
The Financial Sector Conduct Authority and Prudential Authority issued this consultation report to finalize regulatory requirements for insurer outsourcing arrangements. The amended Joint Standard mandates compliance within six months of commencement, extends a 24-month or renewal-based transition for prior contracts, and broadens the definition of service providers to encompass all material outsourcing functions. Stakeholder feedback prompted clarifications on Board oversight, remuneration criteria, binder arrangements, and consistent governance expectations for highly outsourced linked insurers.
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