Credit unions that wholly own or invest in CUSOs will finallyknow what new regulations they will be required to meet when theNCUA releases its final rule during its June 21 board meeting.

|

The regulator released its meeting agenda Thursday, which alsoincludes a closed meeting to discuss supervisory and personnelmatters.

|

It's been almost a year since the NCUA proposed requiring all CUSOs to file financial reports directlywith the agency as well as the appropriate state supervisoryauthority.

|

The regulator also proposed making additional parts of the CUSOrule applicable to federally insured state-chartered CUs as well asfederal credit unions.

|

The NCUA Board said it was also concerned thatless-than-adequately capitalized federally insured state creditunions posed serious risk to their members and the NCUSIF when investing money intofailing CUSOs.

|

Credit unions were critical of the proposed rule in more than280 comment letters submitted to the regulator. Letters citedthe need for more clarification regarding whether credit unionswould have to file financial reports for only wholly ownedsubsidiaries, or all CUSO investments.

|

Opponents of the proposed rule also said it would add toregulatory burden.

|

Matz told the Washington Post in a June 10 article thathighly complex or high risk CUSOs, such as those that providelending or IT services, will be required to report financials andclient lists.

|

Additionally, Matz said the regulator is considering limitinglength of time credit unions are subjected to the CUSO investmentcap of 1% of total assets.

|

The NCUA Board chairman was also quoted saying the regulatorprobably won't require credit unions to comply with the reportingrequirement until January 2014.

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

  • 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.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.