NCUA Says CUSOs Can Provide CUs With Compliance Services
Credit unions can form a CUSO to provide services aimed at helping credit unions comply with federal regulations, according to a legal opinion from NCUA Associate General Counsel Sheila Albin.
She wrote that such services are allowed under the preapproved category of "clerical, professional and management services."
But she cautioned that the services must focus on compliance audits of credit unions and research. She also noted that the CUSO can't provide legal advice "that would require an attorney's license under state law."
In addition, because the CUSO may hire credit union employees on a part-time basis, those employees must be cognizant of potential conflicts of interest and be sure that they don't violate the confidentiality of credit union records. Albin wrote the letter to Guy Messick, a Media, Pa., attorney.