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June 30 deadline to amend CUSO agreements
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| See the June Compliance Monitor (member only) for more on the CUSO rule, other compliance deadlines. |
June 6, 2014 – Federally insured credit unions are coming up on a June 30 deadline for amending their agreements with credit union service organizations under an NCUA rule adopted last year.
The rule takes effect June 30. Overall, it:
- clarifies that NCUA's CUSO regulations apply to CUSO subsidiaries as well;
- requires credit unions to ensure the CUSOs they work with agree to provide NCUA and appropriate state regulators basic profile information (and other information if they engage in certain complex or high-risk activities);
- requires credit unions to ensure CUSOs adhere to generally accepted accounting principles and obtain a financial statement audit.
The rule also sets a preapproval process for federally insured, state-chartered credit unions that are or would become less than adequately capitalized by increased investment in a CUSO. It also provides for a registry of CUSOs that NCUA says will be operational in December 2015.
NAFCU published an electronic Final Regulation – 13-EF-30 – on this rule for its members. NCUA also issued Letter to CUs 13-CU-13 on the rule.
More details on coming regulatory compliance deadlines are in the June edition of the NAFCU Compliance Monitor.