Regulatory Alerts2022-05-11
Final Outsourcing Policy Decisions for Registered Banks
The Reserve Bank of New Zealand issued final policy decisions revising the outsourcing framework for registered banks to mitigate operational risks while maintaining business flexibility. The updated policy introduces a formal definition of outsourcing, mandates robust backup capabilities for functions outsourced to overseas parents, and requires banks to maintain separation plans and a comprehensive compendium of arrangements. Additionally, the framework clarifies basic banking services, establishes a streamlined engagement process for non-objection applications, and sets a five-year transition path for compliance with the new requirements.
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