NCUA Mulling CUSO Rule Amendments
After receiving more than 280 comment letters on its proposed CUSO rule amendments, the NCUA is still considering its next steps.
“The [board] hasn’t decided one way or the other what it wants to do with the proposed CUSO rule amendments. Currently it is taking the comment letters under advisement,” said David Small, NCUA spokesman and assistant director of public affairs, told Credit Union Times this week.
Small said most of the 280 comment letters are duplicative “with the same verbiage signed by different people.”
In July, the NCUA proposed a rule that would require all CUSOs to file financial reports directly with NCUA and the appropriate state supervisory authority. The regulator also proposed making additional parts of the CUSO rule applicable to FISCUs as well as federal credit unions.
The NCUA board said it was also concerned that less than adequately capitalized FISCUs posed serious risk to their members and the NCUSIF when investing money into failing CUSOs. To address the concern, the regulator proposed limiting these FISCUs’ aggregate cash outlays to a CUSO, consistent with state laws.
Credit Union Times previously learned that NCUA Staff Attorney Christie Loizos told attendees at last week’s NACUSO’s Business Services Connection in San Diego that because of the large amount of comment letters to read through, a decision on the CUSO proposal would likely not come until after the first of the year.