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Central Outsourcing Management (COM)
Understanding Central Outsourcing Management (COM) in Europe and Key Jurisdictions
Central Outsourcing Management (COM) refers to the structured approach to managing outsourced services, ensuring they comply with regulatory standards while maintaining operational efficiency and risk control. In Germany, Austria, Switzerland, Luxembourg, and Liechtenstein, COM encompasses a centralized governance framework for overseeing all third-party arrangements. Effective COM ensures financial institutions can manage risks, maintain control over critical functions, and meet supervisory expectations.
Legal and Regulatory Requirements for Central Outsourcing Management (COM)
Financial institutions must adhere to comprehensive COM regulations that address risk management, oversight, and accountability across all jurisdictions.
European Union
- ECB: The European Central Bank emphasizes COM under its Guidelines on Outsourcing Arrangements, ensuring institutions have adequate governance, risk management, and oversight for outsourced services.
- EBA: The European Banking Authority’s Guidelines on Outsourcing under CRD V require financial institutions to identify critical functions, manage risks, and ensure ongoing monitoring of service providers.
- EIOPA: The European Insurance and Occupational Pensions Authority enforces outsourcing regulations under the Solvency II framework, focusing on governance, risk control, and reporting.
- ESMA: The European Securities and Markets Authority enforces outsourcing requirements under MiFID II, ensuring investor protection and market integrity.
Germany
- BaFin and Deutsche Bundesbank: The MaRisk framework mandates that institutions implement robust COM systems to oversee critical outsourced functions, manage risks, and ensure compliance with outsourcing regulations.
Austria
- FMA: Austria’s Financial Market Authority enforces outsourcing requirements under the BWG and VAG, emphasizing governance and risk management for outsourced services.
Switzerland
- FINMA: The Swiss Financial Market Supervisory Authority’s Circular 2018/3 outlines COM expectations, including the management of risks associated with critical outsourcing arrangements.
Luxembourg
- CSSF: The Commission de Surveillance du Secteur Financier requires strict COM compliance under CSSF Circular 22/806, focusing on risk assessment, governance, and monitoring of third-party providers.
Liechtenstein
- FMA: Liechtenstein’s Financial Market Authority aligns COM requirements with European directives, emphasizing the need for robust governance and risk management in outsourcing arrangements.
Leitner & Associates‘ Central Outsourcing Management Solutions
We provide tailored COM solutions to ensure your institution meets regulatory requirements while maximizing outsourcing efficiency:
- Audit: Comprehensive audits to assess the effectiveness and compliance of your COM framework.
- Consulting: Expert advice for developing and optimizing COM systems tailored to your institution’s needs.
- Training: Custom programs to equip teams with the knowledge and skills required for effective COM oversight.
- Interim Management: Providing experienced professionals to manage COM functions during transitional periods.
- Outsourcing: Full-service solutions to streamline COM operations and ensure continuous compliance.
Products for Central Outsourcing Management Implementation
From initial setup to ongoing improvement, our products support every phase of COM:
- Commentaries: In-depth analysis of COM regulations and practical insights for implementation.
- Guidelines: Frameworks for establishing and managing effective COM systems.
- Policies: Clear documentation of COM governance, roles, and responsibilities.
- Procedures: Detailed instructions for managing outsourcing arrangements.
- Control Plans and Checklists: Tools to monitor compliance and mitigate risks.
- Reports and Training Certificates: Comprehensive documentation and validation of COM efforts.
Why Choose Leitner & Associates for Central Outsourcing Management?
At Leitner & Associates, we specialize in creating robust COM frameworks that not only ensure compliance but also enhance operational efficiency. Whether building from scratch or optimizing existing systems, our solutions are tailored to meet the specific needs of your institution.