Global Correspondence

GFMA Response to FSB TPRM Consultative Document

GFMA submitted a response to the Financial Stability Board’s (FSB) consultative document on “Enhancing Third-Party Risk Management and Oversight.”  The response identifies six key aspects to raise for the FSB’s continued consideration regarding specific parts of the toolkit in the consultative document.  These include:

  1. Critical services should focus on risk to FI safety and soundness and financial stability.
  2. The Associations support the principle of proportionality.
  3. The focus on key n-th parties should be limited to material subcontractors.
  4. FAs should not seek to engage in oversight of third parties indirectly through the supervision of FIs; oversight of third parties by FAs should occur through direct means where appropriate legal authority is available.
  5. The FSB should ensure that any direct reporting to FAs by third-party service providers is accompanied by safeguards for FIs.
  6. The FSB can aim for greater cross-border regulatory cooperation.

– 22 August 2023 –

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