Section 4.2.4 Conflicts of interest

43. In-Scope Entities shall identify, assess and manage conflicts of interests with regard to their outsourcing arrangements.

44. Where outsourcing creates material conflicts of interest, including between entities within the same group, In-Scope Entities need to take appropriate measures to manage those conflicts of interest.

45. When functions are provided by a service provider that is part of a group or that is owned by the In-Scope Entity or its group, the conditions, including financial conditions, for the outsourced service shall be set at arm’s length. However, within the pricing of services synergies resulting from providing the same or similar services to several In-Scope Entities within a group may be factored in, as long as the service provider remains viable on a stand-alone basis; within a group this shall be irrespective of the failure of any other group entity.

46. The In-Scope Entity shall, in particular, ensure that the service provider is independent from the statutory auditor (réviseur d’entreprises agréé or cabinet de révision agréé) in charge of the statutory audit of the In-Scope Entity and from the group to which the statutory auditor belongs.