The UK has published its third party outsourcing themed review.

The review assesses the adequacy of subscribers to the standards of lending practice’s systems, processes and controls to ensure that where processes are outsourced, the Lending Code is complied with and that any breaches are identified, reported and remedied.

The review covers a number of aspects of third party outsourcing, including:

• the governance arrangements in place over third party outsourcing;
• the design and operational effectiveness of the firm’s due diligence policies and processes when selecting a process to outsource;
• the effectiveness of the subscriber’s oversight of any third party;
• the adequacy of management information available to monitor the third party’s performance; and
• the change framework in place to ensure that any changes take into account third party impact, any Lending Code changes are communicated to the third party and all changes are tested to ensure they are working effectively.

The review concluded that the firms reviewed had in place well-structured and robust management frameworks for third party suppliers.

• Copies of the review

and

• the associated webpage are available.