<p>NEWPORT BEACH, Calif. – NACUSO plans to fully explore at its annual conference May 1-4 the effects on CUSOs if the Securities and Exchange Commission decides not to extend the license exemption applied to CUSOs under the Chubb Securities Letter of 1993, that allows CUSOs to share commissions with broker/dealers. The four-day conference is being held at the Paris Hotel in Las Vegas. As a result of the NCUA Board's passage of the Incidental Powers regulation in July 2001, the license exemption applied to CUSOs by the SEC under the Chubb letter is in jeopardy. NACUSO has opined that the removal of the license exemption for CUSOs "will cause a major shift in the delivery model for investment services and disrupt hundreds of programs without serving any discernable public service." NACUSO has taken the position that "not continuing the exemption will put hundreds of CUSOs out of compliance. It may also prevent credit unions with assets under $100 million" which account for 90% of all CUs, "from offering investment programs to their members." Should this happen, NACUSO argues, the majority of CUs will be unable to offer investment services and insurance products to members, and "they will soon be marginalized and their long-term viability seriously threatened." NACUSO, together with CUNA and NCUA is actively involved in discussions with the SEC to continue the CUSO exemption in networking arrangements. Meanwhile, the SEC has recommended that no new networking arrangements be established through CUSOs. Conference sessions will also focus on trust services, CUSO regulations, the role of CUSOs in providing financial services, and CUSO recruiting and compensation. -</p> <p>[email protected]</p>