New FINMA Outsourcing Circular for Banks and Insurers

The Swiss Financial Market Supervisory Authority FINMA has released a new circular 2018/3 on the outsourcing of banks and insurers (“Circular“), which has entered into force on April 1, 2018 and replaces the previous circular 2008/7 on the outsourcing of banks. The Circular contains regulatory provisions for Swiss banks, securities dealers and newly also for insurers, which outsource essential functions to service providers. The revision of the Circular was driven by the guiding idea of a more principle based regulation of outsourcings and an increased individual responsibility of the corporations. The respective provisions also partly affect the auditors of the outsourcing corporations and the service providers taking over, respectively.

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