The FFIEC and several federal banking agencies (the Federal Reserve, FDIC, and OCC) recently announced the publication of new and revised guidance on the use of third-party technology service providers (“TSPs”) by federally-regulated financial institutions:
- The FFIEC has released a revised Outsourcing Technology Services Booklet, regarding the use of and examination criteria for financial institutions that outsource technology-related services to TSPs. The booklet provides valuable guidance to financial institutions on important considerations when engaging and contracting with TSPs.
- The Federal Reserve, FDIC, and OCC recently issued Administrative Guidelines – Implementation of Interagency Programs for the Supervision of Technology Service Providers with regard to the supervision and examination of TSPs by these agencies. These guidelines discuss the processes the federal agencies will use in examinations of TSPs, including with regard to risk-based supervision and exam frequency.
- The FFIEC has released a revised information technology booklet within its Information Technology Examination Handbook, Supervision of Technology Service Providers. The booklet also provides guidance on the examination of TSPs by federal banking agencies.