Newsroom
NAFCU Reg Alert seeks CU feedback on the NCUA’s member expulsion proposal
NAFCU sent members a Regulatory Alert Thursday to break down the NCUA’s proposed rule to make changes to member expulsion procedures bylaws of federal credit unions (FCUs).
The proposal, announced during the NCUA Board's September meeting as part of implementation of the Credit Union Governance Modernization Act, would develop a policy through which an FCU member may be expelled ‘for cause’ by a two-thirds vote of a quorum of the FCU’s board of directors.
Of note, NAFCU is supportive of the rule and seeks to ensure that the final rule is cognizant of the varied nature of credit unions and avoids a one-size-fits-all approach to member expulsion.
Through the Regulatory Alert, NAFCU highlights the following:
- ‘for cause’ reasons of expulsion would include a substantial or repeated violation of membership agreement, substantial or repeated disruption to credit union operations, including dangerous or abusive behavior, or fraud, attempted fraud, or other illegal conduct;
- the rule would give a member 60 calendar days from the date of receipt of a notification of a pending expulsion to request a hearing from the board of directors of the FCU;
- FCUs would not be required to provide an in-person hearing – a virtual hearing that provides the opportunity for the member to orally present their case would be sufficient; and
- the rule would retain the limitation of services policy as a tool to be used in tandem with the new expulsion policy.
The Regulatory Alert also includes questions for credit unions to consider when providing feedback.
Of note, NAFCU Senior Regulatory Affairs Counsel Aminah Moore recently discussed the proposed rule with American Banker stating that the rule would allow FCU board of directors to “deal with discrepancies more promptly than before and protect other members from potential physical and financial harm.”
Comments in response to the proposal are due to NAFCU Nov. 4 and can be submitted through the alert; comments are due to the NCUA 60 days after publication in the Federal Register. Subscribe to receive Regulatory Alerts in your inbox.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.