OM-3.8 OM-3.8 Intragroup Outsourcing
OM-3.8.1
As with outsourcing to non-group companies, the Board and management of licensees are held ultimately responsible by the CBB for the adequacy of systems and controls in activities outsourced to group companies.
Amended: January 2011
October 07OM-3.8.2
However, the degree of formality required – in terms of contractual agreements and control mechanisms – for outsourcing within a licensee's group is likely to be less, because of common management and enhanced knowledge of other group companies.
October 07OM-3.8.3
A licensee must seek the CBB's prior written approval at least 6 weeks before committing to a material
intragroup outsourcing . The request for approval must be made in writing to the licensee's normal supervisory contact, and must set out a summary of the proposed outsourcing, its rationale, and an analysis of its associated risks and proposed mitigating controls. The CBB will respond to the request for approval notification in the same manner and timescale as set in Section OM-2.3 above.Amended: October 2017
Amended: January 2011
October 07OM-3.8.4
The CBB expects, as a minimum, an agreed statement of the standard of service to be provided by the group provider, including a clear statement of responsibilities allocated between the group provider and licensee.
Amended: January 2011
October 07
