NAFCU Reg Relief Manifesto Includes Merchant Data Breach Accountability
NAFCU on Tuesday outlined a five-point regulatory relief plan the trade will pursue this year.
President/CEO Fred Becker penned the letter to the House Financial Services Committee and Senate Banking Committee that includes initiatives that would hold merchants accountable for the costs of data breaches and provide better access to the Central Liquidity Facility.
The five points detailed in the plan include administrative, structural and operational improvements, as well as reforms to capital rules and data security.
In addition to better access to the CFL, administrative improvements include the ability for safe and sound federal credit unions to seek “parity under broader state rules.” NAFCU is also pushing for the NCUA to modify rules that result in unexpectedly high costs, and for the agency to address the potential ill effects of CFPB rules.
Structural improvements include a congressionally mandated NCUA report on changes to corporate governance rules, improved field-of-membership expansion processes and more flexibility for merging credit unions and those that wish to serve underserved areas.
Operational improvements include increased member business lending authority and more flexibility on other loan rules, revised investment powers, insurance coverage for Interest on Lawyers’ Trust Accounts and the elimination of annual privacy notice mailings when policies do not change.
H.R. 5817, a bill that would eliminate the annual privacy mailing, passed the House in December but died in the Senate.
NAFCU also proposed that the NCUA, with input from the credit union industry, conduct a study on prompt corrective action and report recommended changes to Congress. Access to supplemental capital for some credit unions and a risk-based net worth requirement that accounts for material risks also were on NAFCU’s capital reform wish list.
Finally, in addition to seeking accountability for merchant data breaches, NAFCU will pursue requiring merchants to disclosure their data security policies to customers and provide timely disclosures in the event of a breach, and will seek national standards for safekeeping of all financial information.