NCUA Announces Four Proposals Aimed at Cutting Red Tape

ALEXANDRIA, Va.–NCUA has announced the first round of proposed regulatory changes associated with a new initiative to review and potentially revise the agency’s regulations. 

The initiative, NCUA’s Deregulation Project, follows Executive Order 14192, Unleashing Prosperity Through Deregulation.   

According to the agency, the Deregulation Project will involve a comprehensive review of regulations documented in Title 12, Chapter VII of the Code of Federal Regulations. 

“This review will ensure the regulations are focused on the safety, soundness, or resilience of credit unions,” NCUA said. 

What’s Being Proposed

NCUA said it will propose changing or removing regulations that are: 

• Duplicative of statutory requirements
• Intended to serve as guidance, not requirements
• Overly burdensome. 

In addition to announcing the project, NCUA is requesting comments on four proposals that would clarify agency guidance or eliminate unduly burdensome or obsolete requirements in the Federal Register.  

Four Proposals

The four proposals include:  

Changes for Corporate Credit Unions – 12 CFR 704.8 and 704.15

NCUA is proposing to amend its regulations for corporate credit unions by removing the requirement that a corporate credit union’s asset and liability management committee (ALCO) must have at least one member who is also a member of the corporate credit union’s board of directors.

Changes for Supervisory Committee Audits and Verifications – 12 CFR 715  

NCUA is proposing to amend its regulations governing supervisory committee audits to eliminate unnecessary, redundant, and overly prescriptive provisions. 

Changes for Guidelines for Safeguarding Member Information – 12 CFR 748 Appendix A  

NCUA is proposing to remove Appendix A to part 748, guidelines for safeguarding member information, from the Code of Federal Regulations.  

Changes for Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice – 12 CFR 748 Appendix B  

NCUA is proposing to remove Appendix B to part 748, guidance on response programs for unauthorized access to member information and member notice, from the Code of Federal Regulations.  

Comments on all four are due Feb. 9.  

America’s Credit Unions Responds

“We thank Chairman Hauptman and the NCUA for taking a close look at the regulatory burden facing credit unions and prioritizing transparency and intentionality in this ongoing effort,” America’s Credit Unions President and CEO Scott Simpson, “We’re grateful they understand the exponential opportunity that is unlocked in the lives of credit union members when outdated, duplicative, or unnecessary regulation compliance no longer impacts the institutions they trust.

America’s Credit Unions said it has engaged with the NCUA on these efforts and plans to host an upcoming webinar with agency staff to review the proposals. The association will also solicit member feedback and provide formal comments on them.