Three new deregulation proposals announced by NCUA
The NCUA announced the fifth round of proposed regulatory changes as part of its Deregulation Project Tuesday. Proposed rules include:
- Conversion of Insured Credit Unions to Mutual Saving Banks – 12 CFR 708a would eliminate some procedural, disclosure, and communications requirements for converting insured credit unions to mutual saving banks. These changes would simplify regulatory compliance for conversion disclosures and allow credit unions the flexibility to design disclosures that are effective and clear for their members.
- Mergers of Insured Credit Unions Into Other Credit Unions; Voluntary Termination or Conversion of Insured Status – 12 CFR 708b would eliminate prescriptive requirements associated with disclosures and notification requirements when a credit union’s members vote on a decision to merge or terminate federal share insurance coverage and convert to private insurance.
- Chartering and Field of Membership for Federal Credit Unions - Interpretive Rulings and Policy Statements rescinds IRPS 06-1 because the current Field of Membership (FOM) requirements are in the Chartering Manual, easing the compliance burden on federal credit unions by limiting the number of sources they must check to ensure compliance with applicable community chartering and FOM requirements.
Watch for upcoming Regulatory Comment alerts from America’s Credit Unions requesting member feedback on the proposals.