ALEXANDRIA, Va. ― NCUA has announced its 13th 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 proposals include:
12 CFR 741.3 (a) – Nonconforming Investment Special Reserve
NPRM Summary
“The NCUA Board proposes to remove the requirement that federally insured, state-chartered credit unions (FISCUs) maintain a special reserve for certain nonconforming investments,” the agency said. “The proposal would also remove related references to the reserve requirement in NCUA’s capital, investment, and regulations on requirements for insurance. The Board states that the changes would reduce regulatory burden, simplify requirements, and provide greater flexibility for FISCUs while maintaining safety and soundness and protecting the National Credit Union Share Insurance Fund.”
12 CFR Part 741.7 – Conversion to a State-Chartered Credit Union
NPRM Summary
“The board proposes to remove 12 CFR 741.7, which addresses the process for maintaining federal share insurance following the conversion of a federal credit union (FCU) to a state charter,” NCUA said. “The board states that the provision is outdated and duplicates requirements already addressed in NCUA’s Chartering and Field of Membership Manual (Manual). Because amendments to the Manual have superseded 12 CFR 741.7, the proposal would remove the provision to improve regulatory clarity and eliminate unnecessary duplication.”
12 CFR 745.13 – Notification to Members/Shareholders
NPRM Summary
“The board proposes to revise its share insurance regulation to simplify how federally insured credit unions (FICUs) notify members about NCUA share insurance coverage,” NCUA said. “Currently, FICUs must make certain share insurance materials available in hard copy. Under the proposal, FICUs would continue to provide notice to members but would have greater flexibility in how they do so. The proposal is intended to simplify compliance, reduce costs, and help ensure members receive current share insurance information.”
NCUA said a detailed summary for each proposal can be found here.
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One Response
I am very excited for the continued progress in simplifying simplify the regulatory burden, without sacrificing safety and soundness. Thank you, NCUA!
-Doug Wadsworth