Vendor risk a growing concern for regulators
Financial institutions are working harder than ever to mitigate their operational risk in the post-crisis world, but what are the challenges they face when trying to ensure their vendors aren’t leaving them open to risks, and can they ever really fully control it?
In July last year, the US Consumer Financial Protection Bureau (CFPB) announced its first public enforcement action since its inception in July 2011. Capital One – which offers bank, loan and credit card services – was forced to repay $140 million to customers who had been mis-sold add-on products, including payment protection insurance, by a third-party vendor of its products. The bank was also fined $25 million by the CFPB.
On top of this, the Office of the Comptroller of the Currency (OCC)
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