NCUA Addresses Supervisory Committee Policy, Corporate CUSO Activities for FCUs
April 21, 2011 In addition to approving a final rule regarding corporate credit unions, at the April 2011 National Credit Union Administration (NCUA) Board meeting, a final Internal Ruling and Policy Statement was approved regarding the Supervisory Review Committee. It combines IRPS 95-1 and IRPS 02-1 and adds a new section regarding technical assistance grant reimbursements. The combining of the two IRPS clarifies the process for credit unions to appeal to NCUA's Supervisory Committee on material regulatory determinations.
The new section of the IRPS details the process for appealing the denial of a reimbursement under the Technical Assistance Grants from the Community Development Revolving Loan Fund for Credit Unions. NASCUS commented to NCUA on this proposal, agreeing with the changes and also asking for further transparency about the members of the Supervisory Committee and its activities. The NCUA took our comments under consideration and agreed to address ways to make the Supervisory Committee more transparent.
Additionally, the NCUA Board approved corporate credit union service organization (CUSO) activities for federal natural person credit unions. In final Part 704 adopted in September 2010, the rule restricts corporate credit union service organizations (CUSO) to engaging only in categories of services preapproved by NCUA. The final rule specifies two permissible activities a) brokerage services, and b) investment advisory services; while requiring CCUs to seek NCUA approval for all other CUSO activities. CCU CUSOs primarily serve natural person credit unions and the activities offered are designed to meet the operational needs of the NPCUs. The approved activities now include various information technology activities and asset liability management consulting, advisory and reporting services. To see the full list, click here and view the table that begins on page 2.
To view all other items from the April 21, 2011 NCUA Board meeting including the monthly insurance fund report, follow this link to the NCUA website.