The Central Bank (CB) has published its enforcement priorities for 2015, which include a focus on appropriate governance and oversight of outsourced activities.

The CB states that in 2014, governance failures relating in particular to outsourcing featured in two significant enforcement cases taken by it.

According to the CB, these cases related to firms from different industry sectors, thereby highlighting the fact that governance arrangements with regard to outsourcing are an issue across the regulated sectors. As firms continue to outsource functions to reduce costs and focus on core business, the CB reminds firms that outsourcing is no defence to regulatory failings and states that it expects full compliance with all applicable regulatory requirements and appropriate oversight and supervision by firms of the outsourced activity.