Regulatory Alerts2007-11-06
Added · Updated
CBFA Communication on its policy regarding outsourcing of retail portfolio management services to a service provider in a non-EEA state
The CBFA establishes that credit institutions and investment firms may outsource retail portfolio management services to providers in non-EEA states even if the provider lacks home-country authorization or if no cooperation agreement exists, provided the outsourcing institution demonstrates adequate protective measures. Institutions must notify the CBFA of the outsourcing contract and regime at least one month prior to implementation, allowing the regulator to object within that period. The notification must include the rationale for outsourcing, provider details, draft contracts, and evidence of measures ensuring client protection, operational continuity, and regulatory access. Specific required measures include demonstrating equivalent supervisory standards, sufficient financial resources, independent audit capabilities, strict confidentiality protocols, and contractual rights for the CBFA to access all relevant data and premises.
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