In this article, Alex Brown, a partner in the Information, Communications & Technology Group at Simmons & Simmons LLP, and Lawrence Brown, a managing associate in the same group, explain why the FCA sent a Dear CEO letter on outsourcing to asset managers. The article also focuses on the FCA's concerns about firms' recovery and resolution plans. Industry reaction is set out, as well as checklists of practical steps that asset managers need to consider taking.