In November 2007 financial services companies would come under the umbrella of the Markets in Financial Services Directive regulation (MIFID). This is supposed to spill its impact on the move toward operational risk of investment firms. Intended to create a single European market for financial services, a plethora of rules have been chalked out for managing better outsourcing relationships through MIFID. It has laid down the necessities, which will govern information regarding the firms and the services that will be provided to a client.
It further has stated that outsourcing should not be conducted in a manner where the quality of an organization’s internal control gets damaged.
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