The NCUA's rules regarding director responsibilities won't increase the likelihood of litigation and won't create a conflict between the interests of the credit union and individual members, NCUA General Counsel Robert Fenner said in an opinion letter.
Fenner wrote that the regulations passed by the NCUA board do not create "any sort of litigation trap,'' because they don't create a private cause of action. Also he wrote that board members of FCUs are encouraged to consider the long term effect of their actions.
He noted that the rule clarifying that board members owe fiduciary duties to members is not a "difficult concept nor one that surprises or concerns directors.''
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