4:98 In accordance with Article 17 of the Brokerage Supervision Act, a firm must have an appropriate monitoring system to ensure its effective and prudent management.

4:99 Article 73 of the Brokerage Supervision Act moreover specifies that, in this context, firms are required to take appropriate measures to, on the one hand, limit the operational risk associated with outsourcing and, on the other hand, to ensure that the adequacy of their internal control procedures is not materially impaired and that the NBB is not prevented from monitoring the firm’s compliance with the applicable statutory and regulatory requirements.

4:100 The prudential expectations on outsourcing are laid down in Circular NBB_2019_19.  Please refer to this circular for more information on this subject.