Outsourcing
Increasing numbers of authorised firms are choosing to outsource certain aspects of their business, recognising the benefits, cost savings and efficiencies implicit in appointing an expert third party service provider.
Naturally, the FSA has a keen interest in ensuring that outsourced services that materially impact on the ability of the authorised firm to carry on its business are performed and controlled in a robust manner. To this end, it is imperative that authorised firms ensure that the right legal framework is put in place, reflecting not only regulatory requirements but also properly addressing issues such as risk apportionment, service levels, termination rights and contingency arrangements.
We have a depth of experience in advising on outsourcings by financial services firms and can provide support from inception and partner selection, through due diligence, negotiation and contract settlement. Quite apart from meeting the expectations of regulators, our experience assists us to mitigate the risk of any dispute during the subsequent relationship and minimise the disruption that can be caused by disputes.