FAQ Guidance for SFC Expectations on Virtual Data Storage – Action Needed
In late 2019 the SFC published a circular on the regulatory expectations when using external electronic data storage providers (EDSPs). The industry was however still grappling with a number of issues in this area, in particular around the use of a group affiliate as the sole EDSP and the difficulties associated with obtaining the SFC mandated undertakings from third party EDSPs.
The SFC has now published a set of FAQs which offers welcome clarification on these issues, and in particular offers an alternative route for compliance. We have highlighted some of the main points of interest below. The SFC expects firms to ensure that they meet the requirements as soon as possible.