NCUA finalizes vital records preservation rule

The NCUA Monday issued a final rule revising record preservation requirements for credit unions in the event of a catastrophic event. America’s Credit Unions commented in support of the proposal last month, noting it keeps NCUA’s vital records preservation program rule focused on records needed to restore member services after an event, rather than using it as a broader record retention rule.

NCUA Chairman Kyle Hauptman has acknowledged this rulemaking was prompted in part by comments raised by America’s Credit Unions and its members, particularly the Small Credit Union Committee.

The final rule will clarify the purpose of NCUA’s regulation, remove Appendices A and B, and update certain definitions used in the rule. The final rule also contains two changes based on the feedback received from commenters:

• Credit unions should have more flexibility in determining the content of the vital records preservation log rather than adhere to a prescriptive list of factors;
• There is no reference to consulting with legal counsel on record retention periods.

It takes effect July 16.