Applicant questions
- - Which regulated or critical activities depend on vendors, group companies, cloud providers, administrators, custodians, brokers, or consultants?
- - Who selects, monitors, reviews, and exits each vendor?
- - What happens if a vendor fails or data, trading, reporting, or client service is disrupted?
Why regulators ask
- - Outsourcing evidence shows the applicant remains responsible even when work is delegated.
- - Regulators want to see oversight, access, records, resilience, and exit planning.
- - Weak vendor control can undermine compliance, custody, cyber, and reporting evidence.
What good looks like
- - The outsourcing register ranks materiality and regulatory impact.
- - Due diligence, contracts, service levels, monitoring, incident escalation, and exit plans are documented.
- - Internal owners know what evidence to review and when.
Documents to prepare
- - Outsourcing and vendor register.
- - Vendor due diligence files.
- - Service level agreements and contract summaries.
- - Oversight and review schedule.
- - Exit and contingency plan.
Red flags
- - Critical workflows depend on unsigned or informal vendor arrangements.
- - No internal owner monitors service quality or incidents.
- - Exit plans are absent for technology, custodian, administrator, or broker dependencies.
Build steps
- 1. List every vendor and group-service dependency.
- 2. Rank materiality by client harm, regulatory impact, data access, and operational disruption.
- 3. Document owner, monitoring evidence, escalation, and exit plan.
Disclaimer
Information on LicenseCompare is for general educational purposes only and does not constitute legal, regulatory, financial, tax, investment, or professional advice. Licensing requirements depend on facts and change over time. Always consult official regulator materials and qualified professional advisers.