NAFCU Urges Narrow Implementation Of Director Financial Literacy Rule
When the NCUA issues guidance to credit unions on the new rule mandating financial literacy for board members, it should apply the rule narrowly and be "flexible in the rules application and enforcement,'' NAFCU President Fred Becker wrote in a letter.
He recommended in a letter sent today to NCUA Chairman Debbie Matz that the agency exempt CPAs, those with at least a bachelor's degree in finance and those with significant business or financial experience. Also, he recommended that the agency make the requirements no more burdensome than the agency's own program.
Ideally, the association would prefer that the agency withdraw the requirement.
Under a rule approved by board in December, within six months of joining an FCUs' board volunteers would have to develop a level of financial proficiency which includes basic finance and accounting proficiency. This training can be done by credit union employees, outside sources or, in the case of small credit unions, the NCUA's Office of Small Credit Union Initiatives.