All material outsourcing arrangements by a category 4 investment firm must be the subject of a legally enforceable outsourcing agreement. The contractual liabilities and obligations of the outsourcing provider and licensee must be clearly specified in an outsourcing agreement. Where the outsourcing provider interacts directly with a licensee’s customers, the contract must, where relevant, reflect the licensee’s own standards regarding client care. Once an outsourcing agreement has been entered into, licensees must regularly review the suitability of the outsourcing provider, and the on-going impact of the agreement on their risk profile and systems and controls framework.