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ALEXANDRIA, Va.-NCUA has submitted a comment letter to the Securities and Exchange Commission (SEC) on the Notice of Application of Evangelical Christian Credit Union (ECCU) for Exemptive Relief (SEC File No. S7-12-01). ECCU is requesting to be exempt from registering as a broker dealer in order to offer sweep accounts. Such registration is costly and unduly burdensome, according to many in the credit union community. “We believe this relief would be in the public interest and consistent with the protection of investors,” NCUA Chairman Dennis Dollar wrote in the letter. “If the Commission grants the requested relief, it will have the effect of enhancing consumer choice by removing an unnecessary requirement that burdens the ability of credit unions to provide an authorized service.As we noted in our letter to you of last July, however, the differing capital and regulatory requirements placed on federally-insured credit unions and registered brokers make it impracticable if not impossible for a federally-insured credit union to register with the Commission,” NCUA’s letter claimed. “Accordingly, the registration requirement acts as a significant impediment to the exercise of an authorized power and the expansion of consumer choice.” The letter, dated July 12, is available on NCUA’s Web site at www.ncua.gov.

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