NAFCU's RBC-delay provision also included in House approps bill
NAFCU's RBC-delay provision has been added to the House Appropriations Financial Services and General Government's appropriations bill. NAFCU has long advocated for a modification or delay of this rule, and the association's efforts proved instrumental in getting the language added to this appropriations bill as well as H.R. 5841, which passed out of the House Financial Services Committee Tuesday.
The House Appropriations Subcommittee on Financial Services and General Government will hold a mark-up of its appropriations bill today. NAFCU Vice President of Legislative Affairs Brad Thaler, in a letter to subcommittee leaders ahead of today's mark-up, asked that they support the provision.
This RBC-delay provision, also included in the House Financial Services Committee-passed Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841), comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced by Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., in March. NAFCU President and CEO Dan Berger met with Posey and Heck last week to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.
H.R. 5841, introduced by Rep. Robert Pittenger, R-N.C., deals with the Committee on Foreign Investment in the United States (CFIUS). U.S. Defense Secretary Jim Mattis has urged that CFIUS legislation be included in the National Defense Authorization Act (NDAA), which is currently under consideration in the House. NAFCU will continue to advocate for House members to include a delay of the RBC rule in the legislation.
While NAFCU supports an appropriate RBC system for credit unions, the NCUA's rule as written will have a negative impact on the credit union industry. The association has been opposed to NCUA's RBC rulemaking since its passage and has urged the rule be modified or effective date delayed, particularly because of increased regulatory burdens and costs.
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