Guidance for firms outsourcing to the ‘cloud’
When it comes to regulation, until now, the document ‘Considerations for firms thinking of using third-party technology (off-the-shelf) banking solutions’ issued in July 2014 had been the chief source of leadership from the FCA on such matters.
On 12 November 2015 the FCA commenced guidance consultation GC15/6 with publication of the document ‘Proposed guidance for firms outsourcing to the ‘cloud’ and other third-party IT services’, to which it is inviting comments and responses. The consultation period for interested parties to comment on the draft guidance ends on 12 February 2016.
This draft guidance builds on and expands the areas covered significantly, and aims to help firms to effectively oversee all aspects of the life cycle of their outsourcing arrangements: from making the decision to outsource, selecting an outsource provider, and monitoring outsourced activities on an ongoing basis, through to exit.
Importance of data sovereignty
Doing IT in-house with limited resources may result in gaps or incorrect practice which exposes the organisation to risk; making poor choices when seeking to outsource to service providers also carries risks.
One of the most important aspects here is data sovereignty, the geographic locations where data is stored. Legal precedents as well as changing legislation mean every firm should pay special attention to where its data may be stored by service providers.
Make a better IT outsourcing decision with Serviced Cloud
Service Cloud is a long-term advocate of the benefits of the cloud for financial sector organisations. This means we have a vast amount of experience in delivering the benefits of the cloud to the finance sector. We only use UK ISO 270001 certified data centre facilities which provides the assurance that data is governed by the laws of the UK and the EU.
When it comes to making a good decision on technology partners, Serviced Cloud’s track record of working with compliance and IT managers within in finance firms to ensure FCA compliance is impeccable. We are chosen by firms that value and trust the high quality of our solutions and concierge-class onsite support. To see how we are able to help you, simply get in touch today.