Compliance Blog

Written by Steve Van Beek

A couple weeks ago, NCUA announced the list of their regulations they'll review in 2013:

• 12 CFR 711  Management Official Interlocks
• 12 CFR 712  Credit Union Service Organizations
• 12 CFR 713  Fidelity Bond and Insurance Coverage for FCUs
• 12 CFR 714  Leasing
• 12 CFR 715  Supervisory Committee Audits and Verifications
• 12 CFR 716  Privacy of Consumer Financial Information
• 12 CFR 717  Fair Credit Reporting
• 12 CFR 721  Incidental Powers
• 12 CFR 722  Appraisals
• 12 CFR 723  Member Business Loans
• 12 CFR 724  Trustees and Custodians of Certain Tax-Advantaged Savings Plans
• 12 CFR 725  National Credit Union Administration Central Liquidity Facility
• 12 CFR 740  Accuracy of Advertising and Notice of Insured Status
• 12 CFR 741  Requirements for Insurance
• 12 CFR 745  Share Insurance and Appendix
• 12 CFR 747  Administrative Actions, Adjudicative Hearings, Rules of Practice and Procedure, and Investigations

The list is available here.  This regulatory review time is a great time to bring ongoing issues to NCUA and demonstrate the regulatory burden from the existing regulations and, importantly, how the existing regulatory burden needs to be reduced as there are new burdens being piled on - from multiple regulators - on a daily basis. 

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Initial Thoughts.  Looking at the list, a couple items jumped out at me.  First, it will be interesting to see how NCUA handles 716 and 717 now that the CFPB has taken over authority for Privacy and a supermajority of FCRA.  Second, is NCUA going to look at providing additional exemptions to the "official advertising statement" - such as for use in social media?  Looks like a natural fit for 12 CFR 740.5(c)(9).  My third thought is below.

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Noninterest-Bearing Transaction Accounts.  As of December 31st, the unlimited share insurance coverage for noninterest-bearing transaction accounts expired.  Now would be a good time to make sure you've removed any notices from your branches and your website.  Also, if you haven't already - be sure to provide impacted members with a notice (you have flexibility as discussed in this December 18th blog post).  

NCUA issued Letter to Credit Unions 12-CU-14 to help inform credit unions in advance of the expiration.  After the expiration was finalized, NAFCU talked with NCUA staff about updating Section 745.14 to remove the outdated language for noninterest-bearing transaction accounts and it looks like it is in the works.