CUNA Asks NCUA To Amend Proposed Disclosure Rules

Register now

CUNA is asking NCUA to add to amendments to the agency's proposed rules increasing disclosure requirements by credit unions seeking to convert to another form of charter.

In a comment letter that supports NCUA's proposal, CUNA also recommended that amendments:

* Direct a converting credit union to make disclosures to members about the conversion separate from other financial disclosures or information such as newsletters. CUNA pointed out such an amendment would facilitate the ability of members to focus on key information about a conversion and not be distracted by other disclosures or materials from the credit union; and

* Require a CU preparing for a membership vote on a conversion to allow all members to be able to object, in writing, or otherwise file comments prior to the conversion vote from the members. CUNA told NCUA such a provision would require a credit union to share that information with the rest of the membership.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER