** Operation Comment has now been launched! **
NCUA has issued a proposed rule requiring federally insured state and federal credit unions to include in their agreements with CUSOs, a requirement for CUSOs to submit financial reports to NCUA and the appropriate state regulatory agency on an annual basis. Under the proposal, CUSOs would be required to adhere to generally accepted accounting principles and applicable financial reporting requirements, and to obtain yearly independent financial audits.
According to the proposal, the NCUA Board “believes it is imperative to have complete and accurate financial information about CUSOs and the nature of their services to ensure protection of the NCUSIF and to identify emerging systemic risk posed by CUSOs within the credit union industry”.
Furthermore, the rule would expand an investment limit provision to all federally insured credit unions that are less than adequately capitalized.
CUNA has issued a Comment Call on the proposal and NCUA is requesting feedback by September 26, 2011.
The League is actively discussing the CUSO proposal with credit unions and plans to send its comment letter to NCUA in the coming weeks. Do you think NCUA is overstepping its authority with this proposal? Will the burdensome nature of such a regulation jeopardize the long term growth and viability of the CUSO system? If your credit union would like to provide feedback on the proposal, please send your thoughts to regcomments@ncleague.org.