Regulatory Alerts2025-10-10
ASIC flags risks in offshore outsourcing after review identifies governance gaps
The Australian Securities and Investments Commission (ASIC) has issued a warning to financial services entities to strengthen governance and risk management following a review that identified significant weaknesses in the use of offshore service providers. ASIC Commissioner Alan Kirkland emphasized that licensees remain ultimately responsible for their operations and must independently assess the suitability and performance of offshore providers to mitigate risks such as cyber incidents and loss of control. The regulator will continue to monitor these frameworks and enforce compliance, citing recent legal actions against firms that failed to adequately manage cybersecurity and outsourcing risks.
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