When can a firm outsource its functions, and what must be ensured?

When can a firm outsource its functions, and what must be ensured?

• A. Whenever a client requests it, regardless of FAIS.
• B. Only for core activities, with no oversight required.
• C. When needed for efficiency; the outsource provider must comply with FAIS and maintain appropriate controls and oversight.
• D. Only if the client pays additional fees.

Answer: (C)