Summary looks at civil money penalties rule
July 5, 2016 – An interim final rule about adjusting for inflation civil money penalties imposed by NCUA is the focus of a new summary posted by NASCUS.
The interim final rule, issued by the agency at its June monthly board meeting, is required by 1990s federal laws that call for the adjustments. The legislation, the summary points out, requires NCUA to review and adjust its CMPs for inflation annually and publish the adjusted CMPs in the Federal Register.
“While the laws require NCUA to adjust maximum CMP amounts, the legislation does not require that individual CMP assessments be made at the maximum level,” the NASCUS summary states. “Historically, NCUA has never assessed a CMP at the maximum level.”
Comments are due July 21 – although the interim final rule will become effective that date as well. According to the summary, the rule would become effective 18 months after publication of a final rule. Incentive-based compensation plans created before the effective date of a final rule, the summary notes, would be grandfathered.