Outsourcing under scrutiny

The requirements around outsourcing have been under the scrutiny of regulators in the EU for some time, quite apart from the impetus given to this issue by the UK’s departure from the EU – indeed, a review of the outsourcing regime was already on the EU’s agenda before Brexit. As a result EBA published its “EBA Guidelines on outsourcing arrangements”, which, in Germany, have led to a change of the German regulation “Minimum requirements for risk management” (MaRisk). Although many firms are still in the process of finalising their implementation projects, the German Government recognised the need for further amendment as a result of the Wirecard scandal. Banks, investment managers, investment firms and insurance companies must now deal with further rules and administrative requirements concerning outsourcing, as set out in the Financial Market Integrity Strengthening Act (Finanzmarktintegritätsstärkungsgesetz ,”FISG”).

In this recording we gain an insight on the practical implications of these new rules and the market reaction in Germany. Furthermore, we will be discussing with you the most relevant rules, timelines for implementation and potential solutions for future organisational models with a focus on cross-border scenarios.