Independent compliance monitoring review of outsourcing arrangements
The Client’s Needs
A large US-owned insurance group required an independent compliance monitoring review of the firms’ outsourcing arrangements in order to meet its’ annual compliance monitoring plan. The review was to consider whether the businesses and functions were complying with the firm’s Outsourcing Policy and thereby the regulator’s requirements as well as whether the processes that had been adopted were effective and efficient. In addition to a review of compliance with the Policy, the firm asked for a review of whether the Policy remained fit for purpose.
ICSR were requested to assist due to their experience.
- Undertook a full review of the Policy and processes which were in operation;
- Deep dives were undertaken on several of the outsourcing arrangements relating to IT to ensure effectiveness of the oversight arrangements;
- Members of the firm’s own monitoring team were included for knowledge transfer purposes; and
- A report was prepared so that the Compliance monitoring function could provide assurance that the Policy and procedures were being followed.
A Director of ICSR led the work with support from a member of the Talent Pool and members of the firm’s own compliance monitoring team.
The Board of Directors was satisfied that the firm was meeting regulatory expectations for Outsourcing and that the businesses and functions were on top of oversight of their outsourcing arrangements.