US regulators extend deadline for comments on third-party risk proposal
Comments are now due December 16 rather than November 16. The proposed guidance for banks and credit unions would be non-binding.
Four US financial regulators announced on November 13 that they will give the public until December 16 to comment on proposed guidance for managing risks from third-party relationships. The previous deadline was November 16.
The extension was announced jointly by the Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency.
The agencies said the proposal draws on their supervisory experience and examinations of how financial institutions manage third-party risks. It aims to help banks and credit unions adapt their practices to the risks posed by each relationship. The proposal uses a principles-based framework and would not be binding.
Once the guidance is finalized, the federal banking regulators plan to replace their existing guidance with it, seeking greater consistency and prudent innovation. NCUA also plans to withdraw its current guidance and review related guidance for any needed updates.
In a separate announcement, the Federal Reserve Board extended to December 16 the deadline for comments on a proposed guide covering third-party risk management at traditional community banks under its supervision.
