NAFCU committees discuss FedNow, SIF, more
Members of NAFCU’s Cybersecurity and Payments Committee and Share Insurance Fund (SIF) Committee held meetings Tuesday to discuss the regulatory landscape and NAFCU’s ongoing advocacy efforts related to these issues.
During the Cybersecurity and Payments Committee meeting, members and NAFCU staff reviewed the:
- CFPB’s credit card late fees proposal to drastically cut the credit card late fees safe harbor and put other restrictions on these fees. NAFCU has ardently pushed back against this proposal and misleading claims from the bureau and Biden Administration. Today is the last day for credit unions to submit responses to the association’s survey seeking insights into industry late fee practices and the potential impact of the rule if finalized;
- NCUA’s final rule on cyber incident reporting, which will take effect Sept. 1;
- Federal Reserve’s launch of its FedNow service – a secure and cost-effective real-time payments platform – expected later this summer. NAFCU is offering a free webinar March 28 on FedNow service features and details on its 24/7/365 operations; another free webinar on FedNow preparation and resources is also available on demand; and
- legislative and regulatory efforts related to Regulation E and liability concerns when consumers fall victim to scams on peer-to-peer (P2P) payment apps, such as Zelle. NAFCU has flagged for lawmakers and the CFPB the repercussions of expanding Reg E’s interpretation and will continue to fight against efforts to do so.
During the SIF Committee meeting, members received an update on the NCUA’s investment strategy and SIF outlook. During the NCUA Board’s November 2022 meeting, the agency announced changes to its investments – stopping those in Treasuries and moving all new ones into the overnight account – as liquidity needs were assessed.
Last month, the agency announced it would build the overnight account balance to roughly $4 billion – expected to be achieved in August – through reinvestments of maturing securities as well as new investments from interest income and credit unions’ 1 percent capitalization account deposits.
The Cybersecurity and Payments Committee will next meet June 6; the SIF Committee will meet again Oct. 2.
Compliance Monitor - December 2018
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