Toronto, April 5, 2014 – The Investment Industry Regulatory Organization of Canada (IIROC) has introduced rules notice 14-0012 on outsourcing arrangements for implementation by April 14, 2014. This rules notice instructs member firms in addressing risk when outsourcing business functions.
Though PortfolioAid does not fit the IIROC rules notice definition of an outsourced service provider, it has long shared the view that all critical third party service providers to the financial services industry, including PortfolioAid, must exhibit the utmost care in managing risk. It is for these reasons that PortfolioAid has undertaken an extensive regime of internal control in its handling of client data as well as the provision of its intelligent compliance solutions. PortfolioAid has employed qualified experts responsible for:
- Maintaining adequate safeguards for keeping information confidential.
- Developing and testing plans for business continuity and for recovering from a business disruption.
- Conducting ongoing reviews of the quality of our service.
- Considering legal requirements such as privacy laws, when drafting client agreements and designing internal processes and safeguards.
These functions undergo a comprehensive independent service audit on an annual basis. PortfolioAid’s clients are provided this auditor’s report as assurance of our commitment to managing risk.
PortfolioAid agrees with the regulator’s assertion that, “Without adequate safeguards, this industry trend may give rise to incremental investor protection, market reputation, credit and systemic risks.” We support our clients with appropriate contractual and service level agreements that meet the terms and spirit of IIROC’s new rules notice as well as guidance from other Canadian regulators.
Founded in 2001 and headquartered in downtown Toronto, PortfolioAid is Canada’s market leader in trade surveillance and compliance automation solutions. Serving IIROC & MFDA member firms as well as the regulatory bodies that govern them, PortfolioAid effectively reduces monetary and reputational risk across the Canadian financial services industry.
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