Deals & regulation
US financial regulators propose revised guidance for managing third-party risks
Four US financial regulators requested public comment on proposed guidance for banks and credit unions managing third-party relationships. The agencies say the principles-based framework would help institutions tailor oversight to each relationship's risks. Federal bank regulators intend to replace existing guidance once the proposal is finalized. The proposal is non-binding, but signals supervisory priorities affecting financial institutions and their service providers. Comments are due 60 days after publication in the Federal Register.
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What matters
- The participating agencies are the Federal Reserve, FDIC, NCUA and OCC.
- Federal bank regulators also issued a statement on community banks' engagement with core service providers and related supervisory and enforcement considerations.
- The Federal Reserve separately proposed a companion risk-management guide for community banks it supervises.
Context & caveats
- The announcement does not detail the proposed standards or the specific factors governing core-provider oversight.
Why this made the edition
A substantive primary-source regulatory announcement identifies participating agencies, the proposal's scope, legal status and comment process.
Source material