Overreliance on outsourcing is a growing risk for asset managers
Regulators are turning their attention to reliance on outsourcing – but there may be little that asset managers can do to reverse the trend, even if they wanted to
The systemic risk resulting from outsourcing remains firmly on the agenda of UK regulators. In a letter to chief executives in December 2012 the Financial Services Authority (now succeeded by the Financial Conduct Authority and the Prudential Regulation Authority) asked asset managers to examine contingency plans for outsourcing arrangements. An event to facilitate an exchange of views from both service providers and asset managers is expected to follow.
Susan Wright, senior regulatory adviser
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