The FCA has published final guidance for firms outsourcing to the cloud and other third-party IT services (FG16/5) following its November 2015 draft consultation. The purpose of the guidance is to clarify the requirements on firms when outsourcing to the cloud and other third-party IT service providers and to help all firms effectively oversee all aspects of the lifecycle of their outsourcing arrangements. The FCA expects firms to take note of the guidance and, where appropriate, use it to inform their outsourcing systems and controls. Generally, the FCA sees no fundamental reason why cloud services (including public cloud services) cannot be implemented, with appropriate consideration, in a manner that complies with its rules. The FCA advises that, in producing the guidance, it has worked closely with Project Innovate to identify areas where the regulatory framework needs to adapt to enable further innovation in the interests of consumers.