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third party processor

  1. 1720(1) A firm ("Firm A") which carries on regulated mortgage activities or insurance mediation activities in relation to non-investment insurance contracts, or both, for another firm (or an appointed representative) ("Firm B") under a properly documented outsourcing agreement, the terms of which provide that when Firm A carries on any of these activities ("the outsourced activities") for Firm B:
    1. (a) Firm A acts only on the instructions of Firm B;
    2. (b) in any communication with a customer, Firm A represents itself as Firm B;
    3. (c) Firm A undertakes to co-operate fully with Firm B in relation to any complaints arising from Firm A's performance of the outsourced activities, even if the complaint is made after Firm A has ceased to carry on the outsourced activities for Firm B; and
    4. (d) Firm B accepts full responsibility for the acts and omissions of Firm A when carrying on the outsourced activities and must pay any redress due to the customer;
    or an appointed representative ("Firm A") which carries on such activities for its principal ("Firm B") under such an agreement.
  2. (2) A firm ("Firm C") which carries on regulated mortgage activities or insurance mediation activities in relation to non-investment insurance contracts, or both, for a third party processor within (1) ("Firm A"), where:
    1. (a) the outsourcing agreement between Firm A and the firm for which Firm A is carrying on outsourced activities ("Firm B") authorises Firm A to outsource some or all of those activities to third parties which are firms, and identifies Firm C by name as one of those third parties;
    2. (b) under the outsourcing agreement between Firm A and Firm B, Firm B accepts full responsibility for the acts and omissions of Firm C when carrying on the activities which are outsourced to it by Firm A; and
    3. (c) there is a properly documented outsourcing agreement between Firm C and Firm A the terms of which provide that when Firm C carries on any of the outsourced activities:
      1. (i) Firm C acts only on the instructions of Firm A;
      2. (ii) in any communication with a customer, Firm C represents itself as Firm B; and
      3. (iii) Firm C undertakes to co-operate fully with Firm A and Firm B in relation to any complaints arising from Firm C's performance of the outsourced activities, even if the complaint is made after Firm C has ceased to carry on the outsourced activities for Firm A.