NAFCU outlines cons of third party vendor authority for the NCUA ahead of hearing
Today, the House Financial Services Committee Task Force on Artificial Intelligence (AI) will hold a hearing examining the use of AI within regulatory technology for the financial services industry. Ahead of the hearing, NAFCU’s Brad Thaler reiterated opposition for granting the NCUA additional authority to examine third party vendors. Of note, NCUA Director of the Office of Examination and Insurance, Kelly Lay, will serve as a witness during the hearing.
Thaler, NAFCU’s vice president of legislative affairs, noted there are tools already in place for the agency to get access to information about vendors and the that agency's time and resources are "better focused on reducing regulatory burden by coordinating efforts among the financial regulators."
Thaler also explained that implementation of such authority would incur significant expenditures for the NCUA, that would ultimately be borne by credit unions and their 130 million members due to the fact that credit unions fund the NCUA budget.
Alternatively, Thaler suggested that Congress should require the NCUA to measure the costs and benefits of developing a parallel vendor supervision program versus obtaining vendor examination reports from the FFIEC agencies. "The NCUA should also supply a clear description of the stated objectives and scope of a third-party supervision program," added Thaler. He also noted that Congress could require other FFIEC regulators to share their reports with NCUA, rather than authorize NCUA to create a costly duplicative program.
"NAFCU believes in a strong NCUA, but we also believe that the NCUA should stay focused on where their expertise lies – regulating credit unions," wrote Thaler.
In addition, Thaler called on Congress to reject the Strengthening Cybersecurity for the Financial Sector Act, legislation recently introduced by Rep. Bill Foster, D-Ill., that would give both the Federal Housing Finance Agency and the NCUA additional third-party vendor examination authority. NAFCU has previously opposed this legislation and expressed concerns about the wide authority it would give the NCUA and the potential costs to credit unions.
Thaler sent a similar letter to the Senate Banking, Housing, and Urban Affairs Committee Thursday to share the association’s views on this topic.
NAFCU will continue to oppose granting this additional authority for the NCUA and will keep members up to date via NAFCU Today on relevant regulatory changes.
Add to Calendar 2024-02-20 14:00:00 2024-02-20 14:00:00 Key US AML Regulation Changes for 2024 If you thought the world of anti-money laundering (AML) regulations was easy in 2023, wait for what's in store for 2024. There are several changes coming our way and more that could be implemented later this year. The AML changes are vast, and we currently have a few in place. One is the Beneficial Ownership Provision, which only has an impact for entity-type members. This is a type of regulation you should be aware of because of its impact on your members. This is one example, but others could have different impacts beyond just your members. Key Takeaways Understand the current events that are occurring around the world Learn how these current events are triggering new regulations Examine the current state of regulations and what can be coming Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until February 20, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCBSOs NCCOs NCRMs BSA, compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar NCBSOs will recieve 1.0 CEUs for participating in this webinar About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCCO, NCRM, NCBSO
Add to Calendar 2024-02-15 14:00:00 2024-02-15 14:00:00 Financial Well-Being Solutions: Helping Credit Unions Maintain Their Edge About the Webinar Gain insights from members on their financial concerns and needs across generations and leverage solutions and recommendations to improve your member experience. Takeaways: Better understand your member’s financial concerns across generations. Gain access to our interactive toolkit that highlights research results and recommendations to support your member’s financial well-being. Use the information to teach your staff how they can better support your member's financial well-being. Register Here Web NAFCU email@example.com America/New_York public
Add to Calendar 2024-02-14 14:00:00 2024-02-14 14:00:00 Breaking Down the NCCO Certification Exams Congratulations on making the decision to take the Regulatory Compliance NCCO exams! This webinar is designed to help those of you attending Regulatory Compliance School and with your studying. Join America’s Credit Unions Vice President of Education Jennifer Beylard as she goes over best practices on how to tackle the NCCO exams. You'll also learn the best way to utilize the provided material and maximize your study time. The NCCO exams are challenging - but your preparation doesn't have to be. Key Takeaways Learn and review best practices to prepare for the NCCO exams Explore the best use of the study material Discover how to maximize your study time Register Now Registration is free, but you must register to attend.One registration gives your entire team access to the live webinar and on-demand recording until February 14, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend Credit union employees responsible for compliance who do NOT already have the NCCO designation. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Retirement, Credit Unions
Get daily updates.
Subscribe to NAFCU today.