Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON — While state-chartered credit unions are currently permitted to offer a variety of broker-related services, NASCUS recently told the Securities and Exchange Commission it is concerned that state laws will be preempted by the agency’s Regulation R, which could trigger “redundant and costly examination and oversight.” The SEC is aiming to implement the bank broker exceptions under Section 3(a)(4) of the Exchange Act, as amended by the Financial Services Regulatory Relief Act of 2006. Banks and thrifts would be exempt from registering as broker-dealers for engaging in networking, sweep accounts, trust and fiduciary, and safekeeping and custody activities. If CUs are not granted equivalent exemptions, they would have to register as a broker dealer, wrote Sandra Troutman, NASCUS executive president, government affairs, in a March 23 letter to the SEC. “It is likely that a credit union, facing additional regulatory burden and costs, would choose not to become a registered broker dealer and said services would no longer be offered to credit union members,” Troutman wrote.

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
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.