News Briefs: NASCUS Expresses Concerns

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 wrote." In addition to the 5% limitation, the proposed IRPS includes other operational restrictions that appear more directed toward member protection than safety and soundness concerns," NASCUS told NCUA.

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