Source Document
MAS Notice 658 (Outsourced Relevant Services)
MAS.OUT.2023.Sec9.2.p12.OBL1
9 Audit of Material Ongoing Outsourced Relevant Services > 9.2
Obligation Summary
Ensure board-approved-frequency independent audits for intragroup-provided services.
Where any material ongoing outsourced relevant service is provided by an intragroup entity, the bank must ensure that independent audits are conducted on the material ongoing outsourced relevant service for the purposes mentioned in paragraph 7.1(d) and at a frequency approved by the board that is commensurate with the nature, scope and complexity of the relevant service.
MAS Notice 658 (Outsourced Relevant Services), paragraph 9.2, p. 12 (2023) · Notice 658 Management of Outsourced Relevant Services · p. 12
9.1 Subject to paragraph 9.2, a bank in Singapore must conduct independent audits on each of its material ongoing outsourced relevant services, for the purposes mentioned in paragraph 7.1(d) at least once every three years.
9.2 Where any material ongoing outsourced relevant service is provided by an intragroup entity, the bank must ensure that independent audits are conducted on the material ongoing outsourced relevant service for the purposes mentioned in paragraph 7.1(d) and at a frequency approved by the board that is commensurate with the nature, scope and complexity of the relevant service.
9.3 The bank must, upon request by the Authority, provide the Authority with copies of, or access to, the reports of the independent audits referred to in paragraphs 9.1 and 9.2, within such time as may be specified by the Authority.
What This Requires.
ProfytAI Regulatory Intelligence
Type: requirementRequires the bank, where a material ongoing outsourced relevant service is provided by an intragroup entity, to ensure independent audits of that service are conducted for the paragraph 7.1(d) purposes at a board-approved frequency commensurate with the service's nature, scope and complexity.
Relationship
This is a standalone provision under Section 9.2.p12 (Audit Of Material Ongoing Outsourced Relevant Services): it states a complete duty in its own sentence rather than implementing a broader governing clause.
Why This Exists
It keeps intragroup arrangements under genuine audit discipline while allowing a risk-based cadence, with the board accountable for the frequency chosen.
Implementation Considerations
Typically involves a board-approved audit frequency per intragroup arrangement with a documented risk rationale, scheduled through a function independent of the service.
Interpretation Note · This paragraph supplies the frequency regime for intragroup-provided services, which the preceding paragraph's three-yearly cycle is expressly subject to. The frequency must be approved by the board and justified against the service's nature, scope and complexity, so an unapproved or unreasoned cadence does not satisfy it, and the audits must still be independent.
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