Our Financial Services Regulatory team have published an article in the September 2021 edition of Butterworths Journal of International Banking and Financial Law, making the case for more guidance from sectoral regulators and competition authorities to allow banks and their service providers to get comfortable with the option to participate in collective assurance activities, as part of their outsourcing arrangements.

The risk management of outsourcing and third party arrangements is a challenge facing financial services firms, and therefore accommodations in regulatory policies on the assurance or audit mechanisms which can be used, will likely be of interest and welcomed by firms and their service providers. However, the article emphasises that it is important for regulators to take a further step and provide specific guidance for firms.

To read the article in full, see our FSR blog post.