ALEXANDRIA, Va.-NCUA approved a proposal for a bunch of credit unions to create a CUSO that would provide smaller credit unions with regulatory compliance and consumer advisory services.
Such a proposal would permissible CUSO activity under the agency's preapproved categories of "clerical, professional and management services," NCUA said in a recently posted legal opinion provided Philadelphia CUSO lawyer Guy Messick.
Under the proposal, the CUSO will assist credit unions, particularly smaller credit unions, in complying with consumer protection and other applicable regulations by reviewing a credit union's documents and procedures and providing guidance on meeting compliance obligations. The CUSO, in addition to its own employees, might also use credit union employees the CUSO hires on a part-time basis.
"Regulatory compliance services are not specifically identified within a preapproved activity; however, the activities specified within each preapproved category are illustrative and not exhaustive," said NCUA. "The category of "clerical, professional, and management services" lists "internal audit for credit unions" and "research services" as preapproved CUSO activities."
NCUA cautioned that regular CUSO employees should not give legal advice, unless they are a licensed attorney.
