1.  Where key functions are outsourced, management must be satisfied as to the competency of the relevant service provider and should have a process in place to monitor and review work performed. 
[See also Section E2 (2)]

2.  The firm should ensure that it undertakes suitably robust reviews of the third parties to provide itself with the assurance that they are performing the outsourced functions in accordance with their service level agreements.
[See also Section E2 (2)]
 

1.  Such a process may include initial consideration of a number of outsourced service providers against a set of agreed criteria prior to selection and, thereafter, would involve inter alia:

1. an assessment of performance against contractual or agreed service standards normally enshrined in a service level agreement;
2. periodic performance review meetings; and
3. a comparison of actual performance against agreed benchmarks.

2. No applicable guidance