There is more time to comment on proposed guidance to help banking organizations manage third-party risk, with a new deadline of Oct. 18, the federal banking agencies said Tuesday.
In separate releases, the agencies said the extension for the comment period – originally set to end Sept. 17 – was adopted to allow more time for individuals to analyze issues and prepare their comments.
The proposed joint guidance was issued July 13; it is based on 2013 guidance from the Office of the Comptroller of the Currency (OCC). The latest guidance also covers arrangements between banks and financial technology (fintech) firms.
In July, the agencies said the guidance offers 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.
The guidance also, the agencies said, underscores that banks that outsource services or operational functions remain responsible for ensuring those activities are conducted “in a safe and sound manner and in compliance with all applicable laws and regulations, including consumer protection laws.”
The agencies said the proposed guidance also responds to industry feedback requesting alignment among the agencies with respect to third-party risk management guidance.