Austria Adopts Statutory Outsourcing Regime For Credit Institutions

German version of the text

The Austrian parliament recently passed an amendment to the Austrian Banking Act (Bankwesengesetz – BWG), introducing a new statutory outsourcing regime for credit institutions applicable from 3 January 2018.
 
Background
 
Credit institutions and other financial institutions have entered into outsourcing arrangements for many years and outsourcing has become increasingly important in this sector.
 
The reasons for outsourcing are diverse and include improving cost structures, leveraging synergies, freeing internal resources to focus on core functions, taking advantage of the capabilities of a service provider or accessing new/enhanced technologies, etc.