PROPOSED INTERAGENCY GUIDANCE ON THIRD-PARTY RELATIONSHIPS

On July 15, 2021, the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued an interagency proposed rule on managing risks associated with third-party relationships. The proposed guidance would:

  • Offer a framework based on sound risk management principles for banking organizations to consider in developing risk management practices for all stages in the life cycle of third-party relationships that takes into account the level of risk, complexity, and size of the banking organization and the nature of the third-party relationship;
  • Set forth considerations with respect to the management of risks arising from third-party relationships.
  • Replace each agency’s existing guidance on this topic; and
  • Be directed to all banking organizations supervised by the agencies.

Comment will be accepted until September 21, 2021.