NCUA Delays Vote on CUSO Final Rule (Misc News: June 20, 2012)
The NCUA canceled its June open meeting, originally scheduled for Thursday, where it had planned to consider a final rule governing CUSOs.
CUNA has lobbied the federal regulator regarding its final rule, which was the only item on the agenda for the open portion of the meeting. The board was still planning to have the closed portion of its meeting where it would discuss other matters.
“We view this delay in considering the regulation a positive development as it will give us additional time to voice our concerns to key personnel at NCUA,” CUNA President and CEO Bill Cheney said in a regulatory advocacy update email.
The NCUA has argued that enhancing the monitoring of CUSOs would protect consumers, credit unions and the National Credit Union Share Insurance Fund. However, CUNA has said that while some CUSOs have had issues, CUSOs as a whole do not pose a systemic risk to the credit union system or overall concerns to the NCUSIF.
The proposed CUSO rule would have required CUSOs and their subsidiaries to file their respective financial statements directly to the NCUA, with copies forwarded to state supervisors. This requirement would have broadened NCUA’s current authority to inspect the financials and records of some CUSOs. As proposed, this directive would have been a requirement to maintain insurance under the NCUSIF.
"CUNA will continue to press for minimal regulation that will not impose unnecessary constraints on sound and beneficial CUSO operations," Cheney said, according to CUNA News Now.
MCUL & Affiliates submitted a comment letter in strong opposition to this proposed rule.