US bank agencies propose replacing third-party risk guidance with principles-based framework

The Fed, FDIC, OCC and NCUA jointly proposed new third-party risk management guidance that would replace current standards when finalized. The package includes a companion guide for Federal Reserve-supervised community banks and a statement on supervisory treatment of core service provider relationships. This segment covers what the proposal changes, what stays non-binding, and the comment timeline firms need to track.

• Four agencies propose principles-based, non-binding third-party risk management guidance intended to replace existing guidance once finalized.
• Comments are due 60 days after Federal Register publication; the Fed added a companion guide for its supervised community banks.
• A separate joint statement addresses factors the agencies will consider on community banks' core service provider relationships.