Regulatory Alerts2024-10-11
Added · Updated
Capital Markets Industry Comments on FIMA General Standard 10.10-2024 (Outsourcing of Functions and Responsibilities by Financial Institutions and Financial Intermediaries)
NAMFISA issued FIMA General Standard 10.10-2024 to regulate how financial institutions and intermediaries outsource core functions, prompting industry commenters to propose risk-based amendments that clarify principal business restrictions and in-sourcing rules. The finalized standard retains fund administration as a non-externally outsourced principal function while reclassifying fund administrators under financial intermediaries, narrowing material business definitions, and mandating regulatory approval for off-shoring arrangements. Additionally, the regulator granted a twelve-month transitional period for existing contracts and clarified that records may be maintained in physical or electronic formats for five years post-termination.