When it comes to the sales of nondeposit investment products, NASCUS has told NCUA it has concerns a new proposal is overly broad. The comments follow NCUA's proposed Interpretive Ruling and Policy Statement (IRPS) No. 05-1, which would replace NCUA Letter to Credit Unions Number 150, and which the agency said is "to help credit unions conduct safe and sound third-party brokerage activities."
NASCUS told NCUA that as the administrator of the NCUSIF, the proposed limitation of income from sales to non-members of 5% cannot be applied to state-chartered, federally insured credit unions. NASCUS reiterated that a credit union's ability to provide services to non-members depends on state law, as some states allow credit unions to serve non-members to varying degrees.
"Those decisions are beyond NCUA's authority to curtail without a clear demonstration of overriding safety and soundness concerns," NASCUS told NCUA.
