Legal Briefs

Federal Reserve Board
The Fed has issued a request for public comment on two bankruptcy-related studies it is required to conduct per the Dodd-Frank Act.

The NCUA issued Legal Opinion Letter 11-0204 regarding conflicts of interest of federal credit union directors. The letter discussed whether a director may represent a member as a real estate agent in the sale of a member’s home.

The NCUA Board approved final rules amending the rule governing corporate credit unions. The amendments include internal control and reporting requirements.

The NCUA Board adopted the final version of IRPS 11-1. The Interpretive ruling and policy statement establishes an independent intra-agency appellate process to review material supervisory determinations. The Supervisory Review Committee is established to resolve certain disputes that cannot be resolved informally.

The FASB issued an Exposure Draft of a proposed Accounting Standards Update intended to simplify how an entity is required to test goodwill for impairment. The Update will allow credit unions to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. Comments are due on the proposed change on June 6, 2011. The update will be effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.

The FinCEN issued advisory FIN-2011-A009. The purpose of the advisory is to draw attention of financial institutions to narcotics and bulk currency corridors within the United States.

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Posted in Compliance News, NCUA.