An industry working group set up in the UK after prodding by the regulator has issued guiding principles for asset managers to improve their outsourcing.
The Outsourcing Working Group, established after the Financial Services Authority's Dear CEO letter on outsourcing last year, includes 30 people from 24 organisations, including trade group the Investment Management Association.
The group advises asset managers to improve their oversight of outsourcing contracts through risk analysis and to do exit planning to make sure they can transition to another service provider if needed.
Service providers are advised to provide standardised terminology and documents to allow their clients to transition between providers easily.
The report by the working group can be viewed here.
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