NCUA Sets New Rules on Member Access to Records

ALEXANDRIA, Va. – Over the popular objection of credit union executives, the NCUA Board yesterday approved new rules to open up the internal books, records and minutes of board and committee deliberations to rank-and-file members. The new rules, part of a package aimed at bringing more transparency to credit union operations, will allow any group of members to petition for access to internal records for legitimate reasons. The rules, which attracted broad opposition by credit union managers and the trade groups, will not provide access to the compensation of management, as that issue is being contemplated in another proposal. NCUA Chairman JoAnn Johnson said the rules do not create any new member rights, but clarify what has been in existence for federally chartered credit unions. "The members of the federal credit union own the credit union," said Johnson. "As owners, the members have the right to inspect the credit union's books, minutes and records when they have a proper purpose." The new rules will allow any group of members to petition for access to books, records or minutes for "significant corporate purposes," as long as the access would not harm the credit union, its members or employees. In a nod to opponents of the measure, NCUA raised the top threshold for access by a petition of at least 1% of members to be at least 20 and not more than 500 members, from the original proposal of not more than 250 members. Signers of the petition must have been a member of the credit union for at least 180 days. NCUA still is mulling at least one other transparency proposal to require disclosure of management compensation during mergers, but avid opposition by credit union executives and the trade associations may persuade the agency to defer or postpone action on that rule.