NCUA to Release Final CUSO Rule at June 21 Board Meeting
Credit unions that wholly own or invest in CUSOs will finally know what new regulations they will be required to meet when the NCUA releases its final rule during its June 21 board meeting.
The regulator released its meeting agenda Thursday, which also includes a closed meeting to discuss supervisory and personnel matters.
It’s been almost a year since the NCUA proposed requiring all CUSOs to file financial reports directly with the agency as well as the appropriate state supervisory authority.
The regulator also proposed making additional parts of the CUSO rule applicable to federally insured state-chartered CUs as well as federal credit unions.
The NCUA Board said it was also concerned that less-than-adequately capitalized federally insured state credit unions posed serious risk to their members and the NCUSIF when investing money into failing CUSOs.
Credit unions were critical of the proposed rule in more than 280 comment letters submitted to the regulator. Letters cited the need for more clarification regarding whether credit unions would have to file financial reports for only wholly owned subsidiaries, or all CUSO investments.
Opponents of the proposed rule also said it would add to regulatory burden.
Matz told the Washington Post in a June 10 article that highly complex or high risk CUSOs, such as those that provide lending or IT services, will be required to report financials and client lists.
Additionally, Matz said the regulator is considering limiting length of time credit unions are subjected to the CUSO investment cap of 1% of total assets.
The NCUA Board chairman was also quoted saying the regulator probably won’t require credit unions to comply with the reporting requirement until January 2014.