There are no major specific exceptions outlined in the framework which are relevant to intragroup outsourcing agreements. That said, there are some regulatory requirements which must still be adhered to. There also may be exceptions if the intragroup;
• has demonstrably non-existent risks when regarding the specific outsourcing,
• the requirements regarding the framework do not exist or are irrelevant
• the requirements are regulated elsewhere by another framework or body
• foreign companies which are used by Swiss companies as service providers are now required to prove that they are not being audited by a foreign or external auditor who is enforcing audit rights based on legal opinions or by certificates and letters from a foreign authority. These providers must keep Swiss related information secure. On top of this, the outsourcing company must be in a position to where FINMA and other authors are able to successfully audit the operations.
– Previously there was a FINMA requirement for Swiss financial companies to disclose to their customers that their data and information is being outsourced to a foreign service provider. This is no longer required. Though, there are still frameworks in place which require the Swiss companies, on occasion, to notify their customer that there is a third party involved.
These changes are all subject to a 5-year transition period. Within the next 5 years, all of the above changes must be amended and added to banks and securities dealers operations. This also requires amendments with outsourcing companies to be made.
Once a bank or-or securities dealer makes these changes, the new rules are immediately required to come into effect, regardless of when, within the 5 years, the changes were made.
On April 1, 2018, all new insurance companies will be required to follow the regulations set out in the new framework. All existing insurance companies are required follow the new rules either within the 5 year transition period or as soon as their business plan and internal regulations are updated.Source: https://www.finma.ch/en/news/2017/12/20171205-mm-rs-outsourcing/
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.