www.lexpert.ca 7
clients should be looking for." It's particularly
valuable when implementing a new system.
"It's important to make sure that you've
covered yourself contractually and that
parties have engaged in
enough discussion to
understand how that imple-
mentation is going to work,
how it will come online,
how data will migrate to the
new system."
For providers of these
technology services to
financial institutions,
making sure they under-
stand the new compliance
expectations and have ready
solutions could improve competitiveness.
Schiessel at MLT Aikins suggests that savvy
vendors "are telling their clients up front that
they are very aware of these requirements and
have modelled them into their contract and
business processes."
As cybersecurity, privacy, and the overall
robustness of technology and soware systems
become a focal point for regulators, and regu-
lated companies, Ahmad at Norton Rose
says the language of the negotiated contracts
becomes "much more granular." Insurance
may also play a more prominent role in cyber-
security issues. Customers are now frequently
asking vendors if they have a certain level of
coverage related to those areas, perhaps even
named on the insurance certificate.
Says Ahmad, "e purchaser may be
looking at how a potential supplier can help
it meet regulatory clients, but for the vendor,
there is more risk analysis, and the desire to sell
a service is weighed against the cost of servicing
the contract and the profit potential."
"THERE'S ALWAYS A CONTRACT
INVOLVED IN THESE THIRD-PARTY
SERVICE CONTRACTS.... WHAT'S
INTERESTING IS THAT THESE CONTRACTS
NOW INVOLVE MORE ELEMENTS OF
REGULATION AND COMPLIANCE"
Robert Tremblay
BLAKE, CASSELS AND GRAYDON LLP
Your Quebec business partner