FSA agrees outsourcing contract with Capgemini

It is claimed that the deal will support regulatory reform over the next four years

The Financial Services Authority (FSA) has agreed a three-year IT outsourcing deal with Capgemini Financial Services.

The contract, known as the Strategic Outsourcing Framework Agreement (SOFA), will cover the FSA's application development and application maintenance.

SOFA sets out to help the FSA ensure its systems are fully attuned to regulatory reform in the UK over the next four years.

"Capgemini has a longstanding relationship with the FSA and has demonstrated its understanding of the regulatory environment," said Gareth Lewis, CIO at the FSA.

Capgemini has been working with the FSA since 2006, when it built its Mandatory Electronic Reporting System, which deals with regulatory reporting for the financial services industry.

"We look forward to working with the FSA during a period of significant change for financial industry regulation in the UK as it migrates to the twin peaks model, and to helping them address the challenges and opportunities involved," said Andy Lees, head of Capgemini Financial Services UK.

Chancellor George Osborne unveiled the so-called twin peaks model last year, which will see financial regulation split into two entities.

Prudential supervision will be moved into the Bank of England, and a new consumer protection and market conduct authority will be created.