Due diligence checklist, United Kingdom
FCA SYSC 8: what to ask a vendor
FCA Handbook, SYSC 8 Outsourcing. FCA. Outsourcing a critical function must not weaken internal control or the FCA's oversight.
What it is
Outsourcing a critical function must not weaken internal control or the FCA's oversight.
Who it applies to
Applies to every financial institution in the United Kingdom.
What to ask a vendor, and the evidence to request
| # | Ask the vendor for | Evidence to request |
|---|---|---|
| 1 | Cooperation with the FCA, including access to data and premises | The contract clause giving the institution and its regulator access, audit and information rights, and the vendor's process for an audit request. |
| 2 | No impairment of the institution's control over the outsourced function | A written statement from the vendor, with the policy, specification or sample that supports it. |
In every case
- A named contact at the vendor responsible for this regime, and how the vendor tracks changes to it.
- Which named customers the vendor already serves under this regime, as references you may call.
This checklist is a starting point for a procurement team, not legal advice. Read it with the regulator's own page, your institution's policies and your legal and risk teams; the regime may have changed since the date on this document.
Next
- Every checklist, by country
- What a market scan is and how to run one
- Have Vederca run the procurement: the regime goes into the register as a must-have