Regulatory AlertsCentral Bank of Solomon Islands Prudential Guideline No. 11 on Outsourcing Requirements
The Central Bank of Solomon Islands issued Prudential Guideline No. 11 to establish a minimum framework for financial institutions managing outsourcing arrangements involving material business activities. The guideline mandates that boards and senior management implement robust risk mitigation policies, conduct thorough due diligence, and secure prior no-objection from the regulator before entering into legally binding outsourcing agreements. It further requires continuous monitoring, specific contractual safeguards, and strict reporting obligations to ensure service quality and business continuity.
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