Reminder: NCUA Final Rule on Permanent Insurance Coverage of $250,000
February 1, 2011
February 8, 2011
NCUA issued a final rule regarding the display of the “official sign” and permanent increase in insurance coverage at $250,000. Read the final rule in its entirety.
The rule is effective September 2, 2010, with mandatory compliance with the official sign rule on March 2, 2011.
- As a reminder, each insured credit union must continuously display the official sign:
- At each station or window where insured account funds or deposits are received;
- In the CUs principle place of business;
- In all its branches; and
- On its Internet page (website) where it accepts deposits or opens accounts
The official sign must be legible in all places displayed. Failure to comply is subject to a penalty of $100 per day.
In addition to the signage, the rule requires credit unions to replace the old version of the official sign with the revised version on each document where the credit union has chosen to include the official sign. This includes advertisements, marketing and promotional materials, disclosures, and others. This is an area that likely needs checking on to ensure that your materials are in fact displaying the official sign with $250,000. Since credit unions are required to provide updated printed materials by March 2, 2011, you should be ready to comply with the new brochures before or by that time.
look at the regulatory and economic realities facing the industry today, it appears that there is an all-out assault on income. For that reason, it is imperative to implement proven revenue-producing products to stay viable. And while media coverage of this latest regulatory move suggests that financial institutions will most likely end free checking or introduce any number of new service charges, now is not the time to increase or initiate new fees that don’t provide value for your members.