The IIF has today submitted our comments on the FSB’s discussion paper, Regulatory and Supervisory Issues Relating to Outsourcing and Third-Party Relationships. This FSB discussion paper considers regulatory and supervisory issues relating to outsourcing and third-party relationships, with a particular focus on cloud and the concentration of cloud service providers. The FSB has signaled that this paper will facilitate a discussion on current regulatory and supervisory approaches to the management of outsourcing and third-party risks.
This is a timely and increasingly important topic, especially where the experience of the pandemic and the trend of accelerated digitalization have amplified the role of cloud technology in supporting financial services, both for operational continuity and for the ongoing viability of business models in keeping pace with evolving customer preferences. The IIF encourages the supervisory community to adopt proportionate, risk-based, and outcomes-focused approaches to third-party arrangements, while fostering increased coordination between authorities to promote regulatory and supervisory harmonization.