The NCUA’s decision to cancel its public board meeting and delay a vote on the final rule for CUSOs was hailed by the two major trades as an opportunity to continue pressing the point.
After months of comment and criticism, the agency was expected to vote on and issue the final rule at its regular monthly meeting on Thursday, but on Wednesday canceled its monthly meeting for the third time this year.
“NAFCU applauds the NCUA’s decision to delay issuing the final rule on credit union service organizations,” said the trade group’s president/CEO, Fred Becker.
“NCUA’s decision to postpone consideration of the CUSO rule will give CUNA the opportunity to continue raising concerns and priorities regarding the rule with NCUA Board members and key agency staff,” CUNA President/CEO Bill Cheney said in a statement.
Credit unions were wary of the proposed rule, saying it would add to the compliance burden of both state- and federally chartered, federally insured credit unions.
Many of the comment letters also asked for more clarification regarding whether credit unions would have to file financial reports for only wholly owned subsidiaries, or all CUSO investments.
“From the beginning, NAFCU’s efforts have been focused on opposing the rule as a costly and unnecessary regulatory burden proposed under questionable legal authority,” Becker said in a statement.
“We are pleased that NCUA heeded our concerns and is not taking action on the rule at this time. We will continue to press NCUA on this issue and all other attempts at over-regulation,” he said.
Cheney at CUNA added, “We will continue to press for minimal regulation that will not impose unnecessary constraints on sound and beneficial CUSO operations.”