Succession planning rule should be rescinded, reproposed by NCUA

Outlining a need for significant changes in the NCUA’s succession planning final rule, America’s Credit Unions sent a letter urging the NCUA to rescind the rule and repropose a revised version. This is in response to the agency’s request for comments on the succession planning and simplification of share insurance final rules.

Consistent with America’s Credit Unions‘ previous advocacy on this topic, Regulatory Advocacy Senior Counsel Luke Martone explained that the focus of the succession planning rule should shift from a mandatory requirement to a guidance-based approach that offers practical support to credit unions. “This approach would ensure credit unions receive valuable information from the NCUA without imposing overly rigid compliance requirements,” wrote Martone.

Of note, NCUA Board Chairman Hauptman voted against the proposed succession planning rule in July 2024 and continued to raise concerns about the efficacy of the rule and its burden on small credit unions when he voted in favor of the final rule in December 2024.

The letter also addressed the share insurance simplification rule, offering support while asking the agency to provide comprehensive transition guidance and extend the compliance timeframe as credit unions work to inform members and comply with the changes.

Read the full letter. America’s Credit Unions will continue to engage the NCUA to ensure credit unions can effectively serve their members.