Continuous notifications of (planned) outsourcing for investment firms and managers
Outsourcing of activities requires adequate risk management by financial companies. Especially when it comes to outsourcing activities within the primary processes of financial companies. If you are going to outsource certain activities, you must report this to the AFM in advance. A notification of a (planned) outsourcing provides the AFM with an up-to-date overview of the activities that are being outsourced. With this overview, the AFM can ensure proactive and risk-driven supervision of outsourcing.
To which companies does the notification procedure apply?
The notification procedure only concerns a notification of an outsourcing for:
- A manager of an investment institution
- A manager of a UCITS
- An investment firm
What must a company report?
You do not have to report all outsourcing. It is up to a financial undertaking itself to assess whether and, if so, which outsourcing it must report. The AFM has created a standardized notification form to report an outsourcing. You can use this notification form to report an outsourcing, including the outsourcing of IT and cloud services.
The notification form contains various information components. You must provide answers to the various components for each outsourcing. If a part does not apply to your company, enter 'not applicable' in the answer field. If, in your opinion, a component does not comply with the statutory notification obligation, you can choose to leave the answer field empty.
Which outsourcing must your company report?
You only have to report the material activities that your company has outsourced, regardless of whether this is done to an external or internal (group company) service provider. This concerns activities that relate to the primary process of your company. Your company must itself assess which outsourcing falls under this (via a so-called materiality assessment).
When must your company report?
You must report an outsourcing before you outsource the activities to a service provider.
Who completes the notification form and how do you send it?
The notification must be digitally signed by a director or an authorized officer of your company when it is sent. The signature declares that the notification has been completed truthfully.
You send the completed notification form via Cryptshare to the AFM at the e-mail address: uitbestedingen@afm.nl.
Questions?
For more information about the notification procedure, please refer to the Outsourcing Notifications Manual. If the manual does not provide answers to your specific questions, please contact our Business Desk.