X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ALEXANDRIA, Va.-At last week’s NCUA Board meeting, the agency issued a notice of proposed rulemaking to make the load a little lighter on wholly-owned credit union service organizations and their parent credit unions. The notice would amend part 712 of NCUA’s regulations so that wholly-owned CUSOs would not need to obtain an annual financial statement audit from an accountant if it is included in the annual consolidated audit of the parent federal credit union. According to the Board Action Memorandum, “The amendment will reduce regulatory burden and conform the regulation with agency practice, which since 1997 has been to view credit unions with wholly-owned CUSOs in compliance with the rule if the parent FCU has obtained an annual financial statement audit on a consolidated basis.” Though generally accepted accounting principles would permit a majority owner credit union to procure a consolidated audit, the agency wanted to limit the amendment’s application “to provide prospective minority investors in CUSOs with maximum disclosure of potential risks.” The notice of proposed rule making includes a 60-day comment period.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.