February 07, 2014

NAFCU urges NCUA clarification in diversity assessment policy

Feb. 10, 2014 – NAFCU Director of Regulatory Affairs Mike Coleman on Friday urged clarification and more-targeted language for a set of proposed interagency standards on assessments of financial institutions' diversity policies.

The proposed interagency policy statement is required by the Dodd-Frank Act, which mandates that the section in question should not be construed as requiring any specific action based on the findings in assessments of diversity policies and practices. Coleman, writing NCUA on the proposed interagency policy, said, "NAFCU asks that the NCUA more clearly state that the proposed standards are not regulations or regulatory requirements, and are not subject to examinations."

Coleman specifically suggested clarification of the statement's section concerning examinations so it doesn't read as if the diversity assessments are part of their NCUA examinations. He also pointed out that the part of the statement that applies to vendors and third-party relationships may be inconsistent with NCUA's treatment of third-party relationships in Supervisory Letter 07-01. Coleman asked for clarification on how the policies related to that and other previous guidance.