The FCA has published Guidance Consultation 15/6: Proposed guidance for firms outsourcing to the ‘cloud’ and other third-party IT services (GC15/6).
The draft guidance is intended to clarify the requirements on firms when outsourcing to the ‘cloud’ and other third-party IT services. However, the draft guidance is broader than, but includes issues covered in, ‘Considerations for firms thinking of using third-party technology (off-the-shelf) banking solutions’, which the FCA published in July 2014 as part of its barriers-to-entry work for firms entering, or considering entering, the banking sector. While the July 2014 publication focused on banking solutions, the draft guidance is intended to help all firms to effectively oversee all aspects of the life cycle of their outstanding arrangements: from making the decision to outsource, selecting an outsource provider, and monitoring outsourced activities on an ongoing basis, through to exit.
The deadline for comments on GC15/6 is 12 February 2016.