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ARLINGTON, Va. – NASCUS’ radar screen remains full with new issues such as NCUA’ recently proposed Prompt Corrective Action reform proposal, as well as others the association has been following for awhile. NASCUS Credit Union Council Chairman Mike Litzau, president/CEO, Colorado Central CU in Arvada, said Unrelated Business Income Tax (UBIT) is still prominent as is federal preemption and how the role NCUA as administrator of the National Credit Union Share Insurance Fund (NCUSIF), effects state-chartered credit unions. NASCUS has advocated for the last couple of years that the administration of NCUA be reformed to clearly separate the agency’s functions as regulator and NCUSIF administrator. The association has proposed that NCUA create a Division of Insurance with a director who would report to the NCUA Board and would be responsible for activities related to the insurance fund. NASCUS also wants one of the three members of the NCUA Board to include a state regulator. On the issue of PCA, Litzau said he had given NCUA’s recently issued proposal to reform PCA a “preliminary read” and “hadn’t found anything that disadvantaged state-chartered credit unions from federal credit unions.” NASCUS Government Relations Committee and NASCUS leadership have a teleconference scheduled for this week to review and discuss NCUA’s report on “Prompt Corrective Action Action Proposal for Reform.” NASCUS Chair Elect John Smith, director, Missouri Division of Credit Unions called NCUA’s PCA reform proposal “a good first step,” and added “this is something we’ll all have to get behind to get through Congress. Implementation will be key.” The Missouri state regulator added that “it’s good to know NCUA has done its homework.” Litzau said he didn’t see any conflict between the PCA reform proposal and CURIA. “These are the same solution traveling on different tracks. Depending on which track succeeds it may make the other track irrelevant.” On the subject of credit unions converting to bank charters, Smith said “as a regulator it’s up to members to select the charter they want.” But “fair and accurate disclosure is key,” said NASCUS President/CEO Mary Martha Fortney. Smith said NASCUS is also watching NCUA’s review of the Paperwork Reductions Act (EGRPRA). Every 10 years financial regulators are required to review regulations to determine what is overly burdensome and can be eliminated or made less burdensome. NCUA reviews one-third of its regulations every three years. Another developing issue NASCUS is keeping an eye on is the Bank Secrecy Act, particularly the heavy penalty for non-compliance. -

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