June 08, 2020

NAFCU outlines proposed joint ownership share accounts rule, seeks feedback

reg alertThe NCUA Board last month proposed a rule on joint ownership share accounts, providing parity with changes made for banks by the FDIC in 2019. In a new Regulatory Alert, NAFCU highlights key aspects of the rule that could impact credit unions and seeks feedback from members.

As proposed, the rule would allow federally-insured credit unions to use information in account records establishing co-ownership of the share account to satisfy the signature card requirement.

NAFCU highlights in the alert that under the rule's alternative method, membership or account signature card requirements may be satisfied by information found in account records establishing the joint share account.

Of note, information in account records can take many forms, including the availability of an access mechanism for each co-owner or use of the share account by each co-owner.

Through the alert, NAFCU asks member credit unions:

  • if their credit union would utilize an alternative method of satisfying membership or account signature card requirements; and
  • whether an alternative method is a reliable indicator of account ownership.

Additionally, the Regulatory Alert includes a section-by-section analysis of the rule. Comments are due to NAFCU July 3. Comments are due to the NCUA July 6.