Consultation on revisions to the Outsourcing Policy (No. 6 2022)

Summary

This is a JFSC consultation paper (No. 6, 2022) seeking industry feedback on a draft revised Outsourcing Policy (OSP) and Guidance Notes, which would replace the current OSP issued in March 2017 and last revised in December 2020. It applies to any person to whom the provisions of the Revised OSP apply, and sets out proposed changes together with a draft of the new policy in Appendix B.

• Telecommunication Services: Outsourced activity in the form of Telecommunication Services (network, voice, data centre, cyber security services) would no longer be caught by the OSP.
• Cloud Services: New tailored guidance is proposed for Cloud Services outsourcing; a Business would still have to notify the JFSC about its primary Cloud Service Provider but not about Sub-Outsourcing arrangements for Cloud Services.
• Supervised Persons: All Supervised Persons would become subject to the Revised OSP as a Code under the new consolidated AML/CFT Handbook.
• Managed Trust Company Business (MTCB): MTCB would be exempted from the application of the Revised OSP.
• General clarification: Various provisions and guidance would be reworded for clarity, simplification and alignment with the current regulatory framework, including new group-reliance provisions on due diligence, outsourcing agreements and contingency plans.

The JFSC intends to publish feedback and a final Revised OSP by the beginning of October 2022, after which a three-month transition period would begin before the new policy takes effect. This document itself does not impose final binding rules; it invites comment on the proposals and draft text.

Key obligations

• Interested parties wishing to comment must submit written responses (using the published questionnaire where possible) to Jersey Finance Limited or the JFSC by 31 August 2022.
• Industry bodies or associations responding must also provide a summary of the types of individuals or institutions they represent.

Applies to

Businesses conducting Regulated Activity, Service Providers, Sub-Contractors, Supervised Persons, Managed Trust Company Business (MTCB), Fund Services Business, Trust Company Business, Banking Business, Insurance Business

Deadlines

• 31 August 2022: Deadline for submitting written comments on the consultation and draft Revised OSP.
• beginning of October 2022 (anticipated): Expected publication of consultation feedback and the final Revised OSP.
• three-month transition period from the date the final Revised OSP is issued: Transition period before the Revised OSP becomes effective.