From time to time, you may choose to outsource some business tasks to other companies rather than performing those tasks in-house. The reason for doing this is usually because the provider firm has a particular level of expertise in that function and they can deliver economies of scale that our business cannot.
There are, however, a number of risks involved in activities to a third party. Outsourcing policies describe how our business assesses activities to be outsourced and the prospective party to take on the activity.
For clarity, outsourcing refers to the use of an external provider to perform tasks or functions that we would normally (or traditionally) have performed ourselves in the normal course of business. Particular attention is paid to the outsourcing of any activities that are directly related to our credit activities. Outsourcing does not include other suppliers, for example stationery vendors, equipment maintenance etc
Your outsourcing policy is one of the general conduct obligations for credit licensees. To ensure your compliance you need to test yourself against this policy regularly, document the results and take action to fix any areas of non-compliance.
QED CompliFast is an online compliance monitoring system that Australian credit licensees use to meet their NCCP compliance obligations. With different areas tested quarterly, QED CompliFast ensures adequate testing, documentation and recommended action plans for outsourcing policies.
