MAS Issues Consultation on Outsourcing by Banks and Merchant Banks
MAS proposed revisions to the regime governing banks’ and merchant banks’ outsourcing arrangements, including proposed amendments to the Banking Act. MAS invites comments from banks, merchant banks, and other interested parties. Comments must be submitted by March 08, 2019.
MAS proposed to issue an Outsourcing Notice for Banks and an Outsourcing Notice for Merchant Banks that will set out identical requirements for banks and merchant banks in respect of outsourcing arrangements that are material (material outsourcing arrangements). The proposed Outsourcing Notices will set out legally binding requirements for banks and merchant banks in relation to their material outsourcing arrangements in the areas of management of such arrangements, assessment of service providers, access to information by MAS and the bank or merchant bank, protection of customer information, audit, and termination of such arrangements.
The proposed Outsourcing Notices will incorporate the existing requirements under MAS Notice 634 and MAS Notice 1108. The Notices will impose minimum requirements on management of material outsourcing arrangements, assessment of service providers, and additional requirements on audit. To not subject banks and merchant banks to two sets of overlapping requirements on outsourcing arrangements, MAS intends to repeal MAS Notice 634 and MAS Notice 1108 after the Outsourcing Notices take effect. MAS proposes that the Outsourcing Notices take effect 12 months from the date of issuance to provide a transition period for banks and merchant banks to make the necessary arrangements to comply with the proposed Outsourcing Notices.
Comment Due Date: March 08, 2019
Keywords: Asia-Pacific, Singapore, Banking, Outsourcing, Outsourcing Notice, MAS
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