NCUA Proposes Part Two of Rulemaking for Corporate Credit Unions Comments Due Jan. 28
UPDATED Dec. 1, 2010 The National Credit Union Administration (NCUA) proposed additional revisions to its corporate credit union regulations on Nov. 18, a supplement to the comprehensive changes adopted for Part 704 in September. The proposed rule originally had a 30-day comment period, but was extended to Jan. 28
The proposed rule seeks input on seven areas. NASCUS members can download a summary of the proposed rule at this link by logging in with their username and password. The Federal Register notice can be viewed here.
This proposed rule covers areas that were outside the scope of the rulemaking for the changes made to Part 704 earlier this year. The proposed rule would:
- Require corporates to conduct all board of director votes as recorded votes and include the votes of individual directors in the meeting minutes;
- Require certain audit, reporting, and audit committee practices from the Federal Deposit Insurance Act (FDI Act), Part 363 of the Federal Deposit Insurance Corporation (FDIC) Regulations, and the Sarbanes-Oxley Act of 2002;
- Establish procedures for requesting members not insured by the National Credit Union Share Insurance Fund (NCUSIF) to make voluntary premium payments to the corporate stabilization fund;
- Limit natural person credit unions (NPCUs) to membership in one corporate of the NPCU's choice at any one time and prohibiting an NPCU from making any investment in a corporate where the NPCU is not also a member;
- Require corporates to establish enterprise-wide risk management committees staffed with at least one independent risk management expert;
- Allow corporates to charge their members reasonable one-time or periodic membership fees; and
- Require the disclosure of compensation received from a corporate CUSO by certain highly compensated corporate credit union executives.
Also at the meeting, NCUA approved an interim final rule making technical corrections to its recently approved final rule for Part 704. View the interim final rule at this link. NASCUS members can view a summary of the interim final rule here.
NASCUS continues to work with NCUA regulator-to-regulator on corporate credit union issues and rulemakings, in addition to submitting official comment letters on proposed regulations. State regulators are committed to working with NCUA to oversee and supervise the corporate credit union system. NASCUS will comment on the proposed regulation.