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l l★K

Federal Reserve Bank
of Dallas


November 19, 1999
Notice 99-100

TO: The Chief Executive Officer of each financial
institution, bank holding company, and others
concerned in the Eleventh Federal Reserve District
Year 2000-Related Oversight of
Service Provider and Software Vendor Organizations
The Federal Financial Institutions Examination Council (FFIEC) has issued a letter
outlining the scope of FFIEC agency oversight of service providers and software vendors for the
fourth quarter and during the century date change rollover period.
During the fourth quarter, the FFIEC agencies, through a combination of site visits
and telephone contacts, will review the efforts of service providers and software vendors to
address business contingency planning, change management procedures and conversion, deficiencies noted during previous Y2K agency assessments, and event management planning.
During the rollover period, FFIEC agency examiners will be on site at selected
service providers and software vendors. The agencies also will gather information on the remaining organizations throughout the same period. The FFIEC letter instructs the organizations
to contact their primary FFIEC examining agency for further information.
A copy of the FFIEC’s letter dated October 15, 1999, is attached.
For more information, please contact Ann Worthy, (214) 922-6156, in the Banking
Supervision Department. For additional copies of this Bank’s notice, contact the Public Affairs
Department at (214) 922-5254.
For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

Federal Financial Institutions Examination Council

2000 K Street, NW, Suite 310. Washington, DC 20006, (202) 872-7500, FAX (202) 872-7501

October 15, 1999

To: The Boards of Directors and Chief Executive Officers of companies that provide computer
services and software to insured financial institutions, all federally supervised financial
institutions, senior management of each FFIEC agency, and all examining personnel.
The Federal Financial Institutions Examination Council (FFIEC) agencies place a high degree of
importance on the Year 2000 readiness efforts of the financial industry. Because of the importance of
service providers and software vendors to the financial services industry, in 1998 the FFIEC agencies
augmented the reviews of these organizations to include quarterly analyses of their Year 2000
readiness. We are now in the final months of our Year 2000 supervisory program and our efforts will
focus on the continued Year 2000 readiness of both financial institutions and their service providers
and software vendors. This letter outlines the scope of our activities for the fourth quarter and during
the century date change rollover period relating to service providers and software vendors.
Fourth Quarter Reviews
During the remainder of 1999, a combination of on-site visits and telephone contacts will be used
depending upon the risk profile of the service provider or software vendor. During these contacts,
examiners will review:

Business resumption contingency planning efforts;
Clean management procedures and conversion efforts;
Year 2000-related operating problems;
Deficiencies noted during previous Y2K assessments; and
Event planning efforts.

Century Date Change Rollover Period
The FFIEC agencies plan to monitor operating performance of service providers and software
vendors closely from late December 1999 throughout the first week of January 2000. FFIEC agency
examiners will be on-site at selected service providers and software vendors during this period. These
entities will be notified that an examiner plans to be on-site. All other institutions and companies will
be contacted via telephone during the rollover period by a representative of the primary examining
agency. Efforts during this period will focus on ensuring that mission-critical systems are operating

Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit
Union Administration, Office of the Comptroller, Office of Thrift Supervision.

Examination staff will be gathering information on companies’ performance throughout the rollover
period. This information will help the FFIEC agencies monitor and report on the status of the nation’s
financial institution industry, quickly identify problems, and take appropriate corrective action where
needed. To facilitate the gathering of information, representatives of the appropriate FFIEC agency
will contact you to determine the name, location, and telephone number of the individual or
individuals to contact during the rollover period. The FFIEC agencies will be working together to
coordinate our monitoring efforts. Each FFIEC member agency will notify the service providers and
software vendors it examines of the specific information to be collected.
During the century date change period, management of service providers and software vendors should
promptly notify the primary examining agency of any operating problems encountered. We also
expect prompt and forthright communications between service providers and software vendors and
their clients during this period.
For further information, please contact your primary examining agency’s supervisory office.