Latest deregulation proposal would update bank merger requirements
NCUA’s tenth round of deregulatory proposals includes six proposed changes to the regulations on mergers of insured credit unions into banks.
Issued Tuesday, the changes to 12 CFR 708 A Subpart C are:
- Removing the definition of “clear and conspicuous” from 12 CFR 708a.301 to allow credit unions the flexibility to design disclosures that are effective and clear for their members;
- Revising the newspaper publishing requirement in 12 CFR 708a.303(b)(1) to eliminate an outdated and possibly costly requirement and make pre-board-vote notices more accessible to members;
- Revising the due diligence reporting requirements in 12 CFR 708a.304(d) to streamline reporting requirements, focusing on the substantive outcome of the board’s decision-making process.
- Removing highly prescriptive formatting requirements in 12 CFR 708a.305(e)(2) to reduce administrative burden;
- Removing plain language determining factors in 12 CFR 708a.305(f) to simplify compliance give more flexibility in merger communications; and
- Removing “voting guidelines” from 12 CFR 708a.312 to reduce confusion about what is required.
America’s Credit Unions is analyzing the proposed changes and will issue a Regulatory Comment alert. Comments will be due to the NCUA within 60 days.
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