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ASIC Increases Scrutiny on AFSL Holder’s Outsourcing Arrangements

Posted on October 30th, 2016 by Sophie Gerber in AFSL Compliance

hands-1691205_1280Following on from the Australia Securities & Investments Commission’s (ASIC) Report 482 Compliance Review of the Retail OTC Derivative Sector, ASIC has increased its scrutiny on Australian Financial Services Licence (AFSL) Holder’s outsourcing arrangements. ASIC expects that AFSL Holders have documented legal agreements in place with all external service providers connected with the provision of financial services.

ASIC has clarified that where AFSL Holder’s outsource any functions that are material to the provision of financial  services, formal legal agreements should be in place that document the provision of service and the terms of the agreement between the two parties. This is especially important where AFSL Holders engage the services of related entities based overseas.

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Sarah Murray

Sarah works with the Compliance Team with a particular focus on compliance and legal services. Sarah also works with the Legal Team providing ongoing assistance in drafting and reviewing documentation as well as legal research. Sarah assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support in the form of compliance program implementation and reviews.