Amendments to the Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation
2019-09-12
In order to facilitate the use of cloud computing technology by financial institutions, considering the service quality of financial institutions and strengthening the protection of consumer rights, the FSC drafted the amendment of regulations regarding to the cloud applications by referring to the regulations of other competent authorities. The key points of the amendments are listed below:
1. Financial institutions shall ensure the control of operational risks.
2. Financial institutions shall ensure the FSC, the Central Bank, and themselves to obtain information related to the entrusted operations and have the right to execute on-site examinations.
3. Financial institutions shall ensure the processes of transmission and storage of customers’ data would be taken protection measures such as encryption or encoding.
4. Financial institutions shall effectively evaluate the relative risks and establish inclusive internal control system and execution plan.
5. The financial institutions shall develop appropriate contingency plans in case of emergency.
In order to improve efficiency and simplify the application process, financial institutions should assess whether the operations that would be entrusted to cloud service providers are material outsourcing. The application of material outsourcing should be applied for approval. If it is not material outsourcing, the required application forms would be simplified.
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Update：
2019-10-22