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:
- Critical services should focus on risk to FI safety and soundness and financial stability.
- The Associations support the principle of proportionality.
- The focus on key n-th parties should be limited to material subcontractors.
- 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.
- The FSB should ensure that any direct reporting to FAs by third-party service providers is accompanied by safeguards for FIs.
- The FSB can aim for greater cross-border regulatory cooperation.
– 22 August 2023 –