Federal Reserve Board – Agencies extend comment period for proposed third-party risk management guidance

The Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the Office of the Comptroller of the Currency today announced that they will extend, until December 16, the comment period for proposed guidance on managing risks associated with third-party relationships. Comments on the proposal were originally due November 16.

The proposed guidance reflects the agencies' supervisory experience and lessons learned from examining financial institutions' third-party risk management practices. It is intended to help banks and credit unions tailor their risk management practices to the risks associated with individual third-party relationships. The proposed guidance takes a principles-based approach and, like all supervisory guidance, is non-binding.

When finalized, the federal bank regulatory agencies plan to rescind existing third-party risk management guidance and replace it with the finalized guidance to promote consistency and prudent innovation in the banking industry. NCUA also plans to rescind its existing third-party risk management guidance and will conduct its own reviews to update related guidance as needed.

Also today, the Federal Reserve Board separately announced that it will extend, until December 16, the comment period on a proposed third-party risk management guide specifically for Federal Reserve-supervised traditional community banks.