MAS Proposed Guidelines on Outsourcing

CNPupdate

 

MAS Proposed Guidelines on Outsourcing


Date Published: 1 April 2015


Authors and Contributors: Bill Jamieson, Ryosuke Ojiro and Jason Su.




 

The Monetary Authority of Singapore (“MAS”) first issued the Guidelines on Outsourcing (“Guidelines”), about ten years ago. Since then, outsourcing arrangements have become more prevalent and increasingly complex. To deal with the new challenges, MAS proposed revisions to the Guidelines in September 2014 to raise the standards of institutions’ risk management practices.

The proposed revisions to the Guidelines provide guidance on sound practices that relate to a wide range of issues, including responsibilities of boards and senior management and monitoring and control of outsourcing arrangements. These changes underscore the need for financial institutions to adopt an institution-wide, responsive and rigorous approach towards management of outsourcing arrangements. In addition to these, the proposed revisions include significant changes made in the following areas:

 

 

MAS Proposed Guidelines on Outsourcing

 

Notice on Outsourcing 

Further, MAS proposes that all institutions looking to enter into Material Outsourcing Arrangements have to issue a Notice (“Notice”) that defines a set of minimum standards for outsourcing management. The Notice sets out requirements for the assessment of service providers, protection of customer data, termination of and exiting from an outsourcing arrangement and outsourcing to overseas regulated financial institutions. The expectation is for an institution to manage outsourcing arrangements as if the services continue to be conducted by the institution. Most importantly, the Notice, unlike the guidelines is legally-binding and that the institutions must abide by it.

 

Click here to view:

Guidelines on Outsourcing; and Notice on Outsourcing


Disclaimer: This update is provided to you for general information and should not be relied upon as legal advice.

 

CNPLaw’s Banking and Finance Lawyer

Bill Jamieson is a Partner at CNPLaw LLP. Bill is an English lawyer who is also registered to practise Singapore law in the areas of corporate law, banking and finance and securities laws. He enjoys working in the diverse and dynamic Asian market and helping his clients to achieve their goals.
Partner

    Bill’s practice focuses on corporate financing transactions, investment funds, mergers and acquisitions, private equity and employment law matters. His experience includes 10 years in the City of London and over 20 years in Asia. Before joining CNP, Bill was a partner in a well-known international law firm. He is recommended lawyer for Corporate and M&A, Banking and Finance, Investment Funds and Labour and Employment in Legal 500 Asia Pacific 2020. Bill is one of the firm’s contacts for Interlaw, a network of independent full-service corporate law firms ranked by Chambers and Partners in its highest category, “Elite”, amongst all global law firm networks.



    The lawyers from the Banking & Finance Practice Group (BFPG) have always taken pride in providing a comprehensive range of banking and finance services to our clients, including domestic and foreign international banks, other financial institutions as well as non-bank lenders and borrowers, and foreign legal firms acting for parties outside Singapore.

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