ALEXANDRIA, Va.― NCUA has announced the twelfth round of proposed regulatory changes associated with its Deregulation Project, which it describes as an “ongoing review of NCUA’s regulations to ensure regulations are focused on credit unions’ safety, soundness, and resilience.”
The agency is now requesting comments on three proposals that it said would eliminate obsolete regulations, as well as unduly burdensome requirements in the Code of Federal Regulations.
The proposals include:
12 CFR 704 and 12 CFR 713 – Fidelity Bond and Insurance Coverage
“The board proposes to amend 12 CFR 704 and 12 CFR 713 to simplify fidelity bond requirements for federally insured credit unions and corporate credit unions. The proposal would remove or modify certain requirements related to fidelity bond purchases and renewals, approved bond forms, and guidance on bond coverage levels,” NCUA said.
“The proposed rule would continue to require credit unions to maintain adequate fidelity bond coverage and would preserve NCUA oversight of approved bond forms. The Board believes these changes would reduce unnecessary regulatory burden while maintaining protection against fraud, dishonesty, theft, and other covered losses.”
12 CFR 721 – Incidental Powers (Powers of Federal Credit Unions)
“The board proposes to clarify that Federal Credit Unions (FCUs) may apply directly to the board for approval of an activity that is not already recognized as an authorized incidental power,” NCUA stated. “While FCUs may still seek guidance from the NCUA Office of General Counsel, the board notes that obtaining an advisory opinion has always been optional. The proposed rule would remove language that has caused confusion about whether an advisory opinion is required before submitting an application to the board.”
12 CFR 725 – Central Liquidity Facility
NCUA said it is proposing to update 12 CFR 725 by incorporating certain regulatory changes adopted during the COVID-19 pandemic, removing outdated provisions, and simplifying Central Liquidity Facility (CLF) membership and reporting requirements. The proposal would also provide additional flexibility for capital stock subscription adjustments and make technical updates to improve clarity and consistency, according to the agency.
“The board believes these changes would reduce regulatory burden and modernize the CLF regulations while maintaining the CLF’s role as a contingent liquidity source for credit unions,” NCUA said.
