B-10 Outsourcing Guideline applies to cloud computing says OSFI
Yesterday, OSFI released a memorandum reminding financial institutions that its outsourcing B-10 Guideline applies to new technology-based outsourcing arrangements including cloud computing. In the short memorandum, OSFI stated the following:
…Information technology plays a very important role in the financial services business and OSFI recognizes the opportunities and benefits that new technology-based services such as Cloud Computing can bring; however, FRFIs should also recognize the unique features of such services and duly consider the associated risks.
As such, and in light of the proliferation of new technology-based outsourcing services, OSFI is reminding all FRFIs that the expectations contained in Guideline B-10 remain current and continue to apply in respect of such services.