21 June 2021
In recent years, in pursuit of cost reduction and efficiency improvement financial institutions around the globe have been increasingly interested in outsourcing their business activities to other institutions and specialised service providers. From asset management, where delegation of certain functions was a standard practice since decades, to small payment companies relying on specialised regulatory compliance service providers, there is almost no area of the financial services sector nowadays that has remained immune to the ever-increasing use of outsourcing arrangements. Moreover, rapid digitisation of the financial services sector, featured by more frequent use of cloud technology and specialised providers of IT-related services to financial institutions, has just added more complexity into the game which immediately triggered the attention of financial regulators in the European Union.
Our Tayor Wessing team has provided an overview of the the current state of the EU regulatory framework on outsourcing in the financial services sector.