Banks and credit unions have until Dec. 16 to comment on federal plans for managing risks from outside service providers, after regulators granted a one-month extension.
On Nov. 13, the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, National Credit Union Administration (NCUA) and Office of the Comptroller of the Currency (OCC) announced the 30-day extension for their joint proposal, shifting the deadline from Nov. 16. The Federal Reserve Board separately extended the comment period for its proposed guide for traditional community banking organizations to the same date.
The American Bankers Association, Bank Policy Institute, Consumer Bankers Association and Independent Community Bankers Association had requested an additional month. In their letter, they said members had questions about applying due diligence and contracting practices. They also cited links to cybersecurity, resilience, privacy and compliance work, as well as overlapping comment periods and other regulatory matters.
Published Sept. 15, the interagency proposal calls for institutions to scale oversight to the risks associated with each outside provider. The agencies say it draws on supervisory experience and is principles-based and nonbinding. If finalized, it would replace existing third-party risk guidance; the NCUA also plans to rescind its current guidance and review related material separately.
The agencies said the extension gives commenters longer to assess the proposals and submit responses. Both comment periods now close Dec. 16, and the notices set no date for final guidance.
