CUNA Presses NCUA On Two Regulatory Points
CUNA has filed a comment letter with NCUA on the agency's proposed rules addressing directors, officers and employees, liquidations and NCUA procedures to study and settle disputes.
The letter followed NCUA's request for comment on identifying outdated, unnecessary or burdensome regulatory requirements, as required under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) of 1996.
CUNA's primary recommendations:
* NCUA's rules governing benefits for employees could be modified to allow a federal credit union investing to fund an employee benefit plan to purchase an investment that would otherwise be permissible if "the FCU is acting pursuant to its authority to provide retirement benefits to employees."
* While generally supporting the NCUA's proposed rules on fidelity bonds and insurance coverage, CUNA reiterated its recommendation that the agency use the same net worth standards from Prompt Corrective Action to permit well-capitalized credit unions to qualify for a higher deductible, which is $1 million for RegFlex credit unions with assets over $200 million.