Asset management outsourcing needs more work, says FCA

Positive steps have been taken by asset managers in relation to resilience risk as a result of a December 2012 Dear CEO letter, the Financial Conduct Authority has said in its thematic review of outsourcing in the sector (TR13/10). (Responding to resilience risk involves making contingency plans for the potential failure of a service provider). Help in making firms more resilient has also come from the Outsourcing Working Group (comprising the Investment Management Association, several asset managers and key service providers), which is seeking to improve portability between service providers.