• OM-2.3 OM-2.3 Prior Approval Requirements

    • OM-2.3.1

      A licensee must seek the CBB's prior written approval before committing to a new outsourcing arrangement.

      Amended: October 2017
      January 2014

    • OM-2.3.2

      The request for prior approval must:

      (a) Be made in writing to the licensee's normal supervisory point of contact;
      (b) Contain sufficient detail to demonstrate that relevant issues raised in Section OM-2.4 onward of this Chapter have been addressed; and
      (c) Be made at least 6 weeks before the licensee intends to commit to the arrangement.
      January 2014

    • OM-2.3.3

      Licensees must not outsource "core functions" which are defined as the offering of regulated financing company services, customer due diligence and approval of customers. Core functions also include arrangements that, if they failed in any way, would pose significant risks to the on-going operations of a licensee, its reputation and/or quality of service provided to its customers.

      January 2014

    • OM-2.3.4

      With reference to Paragraph OM-2.3.3, the outsourcing of all or a substantial part of functions such as loan processing and settlements would normally be considered 'core'. IT and data processing may be considered 'non-core' and may be outsourced subject to the CBB prior approval.

      January 2014

    • OM-2.3.5

      Management should carefully consider whether a proposed outsourcing arrangement falls under this Chapter's definition of 'core'. If in doubt, management should consult with the CBB.

      January 2014

    • OM-2.3.6

      The CBB will review the information provided and provide a definitive response within 6 weeks of receiving the request for approval. Where further information is requested from the licensee, however, the time taken to provide this further information will not be taken into account.

      Amended: October 2017
      January 2014

    • OM-2.3.7

      Once an activity has been outsourced, a licensee must immediately inform its normal supervisory point of contact at the CBB of any material problems encountered with the outsourcing provider. The CBB reserves the right to direct a licensee to make alternative arrangements for the outsourced activity.

      Amended: October 2017
      January 2014