NCUA begins targeted regulatory relief effort

The NCUA Wednesday announced efforts targeted at providing regulatory relief for credit unions under Executive Order 14192 issued by President Donald Trump earlier this year. Through this initiative, the NCUA’s Deregulation Project, the agency conducted a review of all regulations and its proposals are intended to enhance financial access to credit unions by ensuring safety, soundness, and resiliency.

“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,” said Scott Simpson, America’s Credit Unions president/CEO. “We’re grateful they understand the exponential opportunity that is unlocked in the lives of credit union members when outdated, duplicative, or unnecessary regulation compliance no longer impacts the institutions they trust."

In addition to announcing the project, the NCUA has published four proposals that aim to streamline requirements and reduce confusion: 

• Supervisory Committee Audits and Verifications: A proposal to update the supervisory committee audit regulations by eliminating outdated, duplicative, and overly detailed requirements. The agency has noted that changes are designed to lessen regulatory burden and increase flexibility for credit unions while keeping the audit framework sound and effective. America’s Credit Unions has consistently requested updates to these regulations and offered recommendations for improvements.
• Response Programs for Unauthorized Access to Member Information and Member Notice: A proposal to remove Appendix B to part 748, which is guidance for developing response programs when member information is accessed without authorization. Because Appendix B is guidance rather than a rule, the Board now believes its placement in the NCUA’s regulations creates unnecessary confusion. The guidance would instead be reissued as separate guidance to improve clarity and allow easier updates while reducing regulatory clutter.
• Guidelines for Safeguarding Member Information: A proposal to remove Appendix A to part 748, the guidelines for safeguarding member information, from the NCUA’s regulations. Although Appendix A was issued to meet statutory requirements for protecting member data, it is guidance rather than a regulation, and the material would instead be reissued as a Letter to Credit Unions.
• Corporate Credit Unions: A proposal to eliminate the requirement that at least one corporate credit union board member sit on the Asset and Liability Management Committee, as well as the requirement for corporate credit unions to file annual reports and related accountant letters with the NCUA.

America’s Credit Unions is 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.

Comments on all four are due Feb. 9.