Final CUSO Rule Gets Nod: On-Site at NCUA
ALEXANDRIA, Va. — CUSOs will need to get ready to report basic profile information next year, based on the final rule approved by the NCUA Board on Thursday.
All credit union subsidiaries will be required to make preparations to report basic profile information to the NCUA effective June 30, 2014. The reporting requirement will be rolled out as the NCUA builds a national registry to house the information. The registry will not be unveiled until the end of 2015.
CUSOs engaging in one of three high-risk business categories will also be required to report additional information, including audited financial statements and customer information, according to the rule approved Thursday.
Those categories are credit and lending, information technology and custody, safekeeping and investment management.
NCUA Board Member Michael Fryzel said the new CUSO rule, which took nearly three years to write and approve, was prompted by the corporate crisis and inability of the NCUA to determine basic industry information about CUSOs, including how many of the credit union subsidiaries exist.
CUSO information will be compiled into a national registry, which Chairman Debbie Matz estimated would be made public by the end of 2015. The cost to develop the registry will be $750,000 in 2014, according to the board action memorandum.
Matz said the NCUA does not feel the rule will stifle CUSO innovation or growth. Instead, she said, the national registry will improve CUSO transparency and standing.