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Outsourcing (Third Party Administration)

You may be considering the addition of a comprehensive administration package to the services you offer to continue to compete in your existing market or add new products to your range. However, administration may not be your core business. Outsourcing administration to a third party administrator (TPA) is one solution. Your relationship with the TPA will govern the extent to which your business is accountable to its regulator for the acts and omissions of the TPA.

Typically, as part of the due diligence checks you perform you will need to prepare and issue an 'invitation to tender' (ITT), evaluate responses, create a shortlist, interview key staff, then test (and later dovetail) systems and controls. You will also need to draft a contract and a service level agreement. ACL can assist you with the selection and appointment of a TPA.

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