Global securities regulators are considering beefing up their oversight of industry outsourcing.
The International Organization of Securities Commissions (IOSCO) has published a paper seeking feedback on its revised principles for regulated firms that utilize outsourcing.
IOSCO said that the proposals were developed before the Covid-19 outbreak emerged. The paper’s publication was delayed to give firms time to deal with the effects of the pandemic.
However, given that the subject of outsourcing is particularly relevant given the shift to remote work in many regions, IOSCO decided to publish the paper now, with an extended comment period.
“As the initial stages of this crisis pass, the IOSCO board has decided to publish this report now because the outbreak… has highlighted the need to ensure resilience in operational activities and to maintain business continuity in situations where both external and often unforeseen shocks impact both firms and their service providers,” IOSCO said.
The revised principles proposed by IOSCO include issues such as data security, due diligence in choosing and monitoring service providers, disaster recovery and confidentiality. They also address remote-work issues such as cybersecurity and operational resilience.
The deadline for comments is Oct. 1.