WASHINGTON-In a recent legal opinion letter, NCUA told Shay Financial Services that a federal credit union cannot purchase certificates of deposit from a Securities and Exchange Commission (SEC)-registered broker-dealer through an introducing broker who is not registered with the SEC or is not a depository institution. In writing its decision, NCUA quoted the regulation, which states an FCU “may use a third-party to buy or sell investments (broker-dealer) as long as the third party is registered with the Securities and Exchange Commission (SEC).or is a depository institution whose broker-dealer activities are regulated by a federal regulatory agency.” 12 CFR 703.50(a), (c) All parties having a connection with the federal credit union, including “introducing” and other types of brokers, must be registered with the SEC or depository institution regulated by a federal regulatory agency. Corporate federal credit unions may be used as a finder since they are regulated by NCUA.

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