Outsourcing and Delegation of Activities by Financial Entities

The Argentine Central Bank (BCRA after its acronym in Spanish) issued Communiques “A” 6354 and 6375, incorporating important modifications to the regulations applicable to decentralization, outsourcing and delegation of activities of financial entities.

Continuing with its efforts to allow the use of technological developments in the financial services industry (see “New Regulation Implementing the Mobile Payment Platform” in Marval News # 162, “New Regulations towards a Digitalized Financial Sector” in Marval News # 165, “The Central Bank Implemented a New Online Immediate Debit Payment Service” in Marval News # 168, and “The Central Bank Added New Activities to Complementary Financial Services” in Marval News # 169), the BCRA opened up new possibilities for financial entities to outsource and delegate activities regarding  information technology services.

Among other modifications, the aforementioned Communiques allow financial entities to hire —either totally or partially— “Information Technology Services” provided by third parties, subject to the condition that such activities fall within the list provided by the BCRA.

Moreover, the BCRA now requires financial entities to report such delegations or outsourcings within 60 days prior to the date of their implementation.

These rules represent a new step towards the updating of the regulatory framework applicable to the financial services industry, aimed at optimizing and expanding the services provided by the entities controlled by the BCRA.