Regulatory Alerts2024-10-11
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Insurance and Medical Aid Fund Industry Comments on FIMA General Standard 10.10-2024
NAMFISA issued General Standard 10.10-2024 to regulate the outsourcing of functions and responsibilities by financial institutions and intermediaries, prompting industry feedback on key definitions and compliance requirements. Commenters sought clarification on whether subsidiaries qualify as service providers, requested exemptions from the blanket prohibition on outsourcing principal business, and debated the materiality threshold for core functions. The regulator declined most definition amendments, maintaining a principles-based approach that prohibits outsourcing principal business to third parties while permitting the insourcing of support functions and tailoring oversight to each entity’s risk profile.
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