Outsource Magazine Issue 28 - (Page 50)

Invested OutsOurcIng More and more insurers are contemplating the Investment Management Outsourcing option – but what does this entail and what are the attendant risks? Duncan Pithouse, DLA Piper Duncan Pithouse is a Partner with DLA Piper, specialising in non-contentious technology and sourcing matters, and focussing on complex international outsourcing contracts. He advises on a wide range of outsourcing transactions and all aspects of a client’s sourcing requirements. T 50 ●● he triple threat of Solvency II, the reduced yields from “traditional” asset classes that mean new classes need to be examined, and the ever-present need to reduce internal fixed costs are causing insurers to look at outsourcing the management of their investment portfolio. Investment management outsourcing (IMO) will need to deal with many, if not all, of the various issues as with any large-scale outsourcing. So, whilst it will be important to cover all bases with regards to scoping, transition, change management, and exit, some issues become magnified and other new considerations arise. What then are the top five iMo-specific issues that need to be considered? 1 Regulatory Overlay This type of outsourcing will inevitably be subject to the various FSA, Solvency II and other insurance sector-specific rules on outsourcing, so it will of course be essential to ensure that the contract covers these issues. This has two impacts. First, the SYSC rules applicable to insurers tend to relate to the manner in which the arrangement is selected and managed and so the overall procurement and the terms will need to be thought through carefully to ensure that the contractual “triggers” allow for the required level of management. “Goodness is the only investment that never fails.” – Henry David Thoreau www.outsourcemagazine.co.uk ● http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 28

News
Deep Thought
John Seddon
At Your Service?
Plenty To Chew On
The Power of Two
Big Data
Invested Outsourcing
Tim Cummins
NOA Round-Up
LPO
Managing Knowledge in a Partnership
A Long Way Still To Go
Recruitment Process Technology
Let’s Talk About Our Relationships
Welcome
Great Expectations
Transformative Technology
The Future of Rightshoring
Top Ten
The Legal View
HfS Round-Up
Offshoring
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 28