Consultation on the Proposed Amended Outsourcing Policy (No. 6 2016)

Summary

This is a JFSC consultation paper seeking industry feedback on proposed amendments to its Outsourcing Policy, which sets requirements for how Registered Persons outsource activities to service providers. It does not itself change the rules; it proposes a revised policy (attached as Appendix B) and asks for comments before finalisation.

• Scope: Widen the policy to cover outsourced activity, regulated and non regulated, that has a material impact on Regulated Activity.
• Delegation/outsourcing distinction: Remove the separate treatment of delegation versus outsourcing for Certified Funds and Fund Services Businesses.
• Core principles: Revise wording of the core principles for clarity and alignment with international standards.
• Definitions: Add a glossary and define key terms, notably introducing a definition of Material Activity.
• Guidance and FAQs: Add additional guidance and FAQs, including on intra group outsourcing and outsourcing notification information requirements and timeframes.
• Structure: Restructure the policy into separate core principles, guidance notes and FAQs.

The proposals could affect all Registered Persons across the Regulatory Laws (banking, collective investment funds, financial services, and insurance businesses). The Commission intends to issue the Amended Outsourcing Policy in late Q4 2016, coming into force two months after issuance, subject to revisions arising from consultation responses. Comments are being coordinated by Jersey Finance but may also be sent directly to the JFSC.

Applies to

Registered Persons, banks, fund services businesses, Certified Funds, trust company businesses, investment businesses, insurance businesses, money service businesses

Deadlines

• 30 September 2016: Deadline for industry comments on the consultation to be sent to Jersey Finance or directly to the JFSC.
• late Quarter 4 of 2016: Planned issuance date for the finalised Amended Outsourcing Policy, subject to consultation feedback.
• two months after issuance: The Amended Outsourcing Policy is intended to come into force two months after it is issued.