The Mutual Fund Dealers Association today issued a notice to remind members and their reps of their obligations regarding outsourcing certain functions to outside service providers.
Under MFDA rules, firms and reps may engage any person to provide administrative services, \u201cprovided that the services themselves do not constitute securities related business or duties or responsibilities that are required to be performed by the\u201d firm or rep. Firms can also enter into introducing\/carrying dealer arrangements with another firm.
\u201cMembers that enter into introducing\/carrying arrangements or engage outside service providers must ensure that the outsourced services meet all applicable regulatory requirements,\u201d notice MR-0061 – Member Obligations Regarding Outsourcing states.
\u201cMembers must exercise due care, skill and diligence in the selection of any service provider to ensure that it has the ability and capacity to effectively undertake the outsourced service. In addition, procedures for monitoring the performance of the third-party service provider on an ongoing basis should be established to ensure that services continue to be performed in compliance with all applicable regulatory requirements.\u201d
The notice also spells out principles adopted by the International Organization of Securities Commissions regarding outsourcing.<\/p>\n","protected":false},"excerpt":{"rendered":"
Notice spells out principles adopted by IOSCO regarding outsourcing<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2324],"tags":[3020],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/302113"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=302113"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/302113\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=302113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=302113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=302113"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=302113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}