MORNBFI Vol. 1 - Planters Development Bank

APP. Q-3709.12.31operations of the service provider to ensurethat the same is in accordance with theexisting information technology initiatives,policies and guidelines of the bank; the listof the members of such committee, itsorganizational chart, and a detaileddescription of the roles and responsibilitiesof its members must be included in theminutes of the meeting or submitted asattachments thereto;(iv) The creation, organization andmembership of a help desk to resolve allqueries, problems and other concernsarising from the applications/operationsrendered by the service provider; and(v) The systems and user acceptancetests that will be conducted by the serviceprovider before full implementation of theoutsourced systems/processes and theunsatisfactory results of which shall be validground to rescind the contract with theservice provider.(c) Profile of the selected serviceprovider or the non-bank partner, in case ofjoint ventures and other similararrangements, which should include:(i) Most recent and complete financialand operational information;(ii) Track record;(iii) List of clientele, particularly banksand the services provided thereto by theservice provider; and(iv) At the option of the service provideror non-bank partner, other documentsdemonstrative of its competence andreputation in the field of informationtechnology as applied to bankingoperations.d. Outsourcing of other bankingfunctions(1) Subject to prior approval of theMonetary Board, banks may outsource thefollowing functions, services or activities:(a) data imaging, storage, retrieval andother related systems;(b) clearing and processing of checksnot included in the PCHC System;(c) printing of bank deposit statements;(d) credit card services;(e) credit investigation and collection;(f) processing of export, import andother trading transactions;(g) property appraisal;(h) property management services;(i) internal audit, subject to thefollowing conditions:(i) the board of directors and seniormanagement of the regulated entityremain responsible for maintaining aneffective system of internal control and forproviding active oversight of theoutsourced internal audit activities/functions;(ii) the external service provider shallbe an independent external auditorincluded in the list of BSP-selected externalauditors or a parent company which ownsor controls more than fifty percent (50%)of the subscribed capital stock of theoutsourcing entity: Provided, That Item“A2” of the general requirements underAppendix Q-30 shall apply to the parentcompany while Items “A2”, “A4”, “A5”,and “A6” shall apply to the independentexternal auditor;(iii) the contract/service agreementwith the external service provider shall notbe entered into for a period longer than five(5) years;(iv) there shall be a contingency planto mitigate any significant disruption,discontinuity or gap in audit coverage,particularly for high-risk areas;(v) the written engagement contract orservice agreement with the externalservice provider shall, as a minimum:(aa) define the rights, expectations andresponsibilities of both parties;(bb)set the scope and frequency of, andthe fees to be paid for, the work to beperformed by the external serviceprovider;(cc) state that the outsourced internalaudit services are subject to regulatoryManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-37 - Page 3