June 30 Deadline to Amend CUSO Agreements Drawing Near
June 13, 2014 – The June 30 deadline for an NCUA rule amending federally insured credit unions’ agreements with credit union service organizations (CUSOs) is fast approaching.
NCUA published LTCU 13-CU-13 to provide credit unions information on the agency’s CUSO rule published during the November 2013 board meeting. NCUA’s CUSO rule is found at Part 712. Federally insured state-chartered credit unions are required to comply with provisions of Part 712 by Part 741.222.
The primary changes to the CUSO regulation made by NCUA’s new final rule include the following:
- NCUA will require CUSOs to provide reports directly to NCUA rather than NCUA’s requiring credit unions report CUSO data on the 5300 Call Report and online profile.
- NCUA is extending CUSO regulations to all levels, or tiers, of a CUSO’s structure, including any subsidiary in which a CUSO has an ownership interest of any amount. The subsidiary will be treated as a CUSO, and is subject to NCUA’s regulations if it is engaged primarily in providing products or services to credit unions or credit union members.
- NCUA will create an online registration system for CUSOs by December 31, 2015. When the system is operational, the CUSO will submit NCUA’s required data via the online registry.
More details can be found here.
The NCUA's clarification of the amended CUSO rule can be found here. NASCUS' summary of the legal opinion can be found here. (Member log-in required to view NASCUS summary.)