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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a non-directive insurer; and
  2. (2) subject to 1.2, a Swiss general insurer.

5.1

01/01/2016

A firm must take reasonable care to supervise the discharge of outsourced functions by an outsourced provider.

5.2

01/01/2016

firm must take steps to obtain sufficient information from its outsourced provider to enable it to assess the impact of outsourcing on its systems and controls.

5.3

01/01/2016

Before entering into, or significantly changing, an outsourcing arrangement, a firm must:

  1. (1) analyse how the arrangement will fit with its organisation and reporting structure, business strategy, overall risk profile and ability to meet its regulatory obligations;
  2. (2) consider whether the agreements establishing the arrangement will allow it to monitor and control its operational risk exposure relating to the outsourcing;
  3. (3) conduct appropriate due diligence of the service provider's financial stability and expertise; and
  4. (4) consider how it will ensure a smooth transition of its operations from its current arrangements to a new or changed outsourcing arrangement, including what will happen on the termination of the contract or following a significant loss of services from the service provider.