ALEXANDRIA, Va. — CUSOs would have to submit financial reportsto the NCUA and there would be limits on the investments certaincredit unions can make in CUSOs, according to a proposed rule theNCUA sent out for comment on Thursday.
|The agency also wants less than adequately capitalizedstate-chartered federally insured credit unions to get permissionfrom their regulators before making investments in a CUSO. Theproposed rule requires CUSOs to use GAAP accounting, preparequarterly financial reports and get annual audits.
|In addition, the rule would expand the definition of CUSO toinclude CUSO subsidiaries.
|"We have our hands tied behind our backs without attaining thisinformation," NCUA Chairman Debbie Matz said.
|Board Member Gigi Hyland called it the best way to improvesupervision without direct authority to examine vendors, which canonly be authorized by Congress.
|There is a 60-day comment period before the new rules takeeffect.
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