Credit Union Views Sought on CUSO Reporting Plan

The National Credit Union Administration (NCUA) last month said its proposed regulation to require credit union service organizations (CUSOs) to directly file their financial statements to the agency would be “controversial.”

The NCUA late last month released the reporting proposal, which would also subject subsidiaries of CUSOs to the same financial reporting standards. Financial reports would also need to be forwarded to appropriate state supervisors.

The agency previously had the statutory authority to examine CUSOs, but that authority expired in 2001, and Congress has not moved to reinstate that authority.

The NCUA does currently have the authority to inspect the books and records of some CUSOs, but that authority is not universal.

Agency leaders released a statement supporting the proposal, stating that if enacted, it would “enhance protections to consumers, credit unions and the National Credit Union Share Insurance Fund.”

The NCUA has requested that all comments be submitted by Sept. 26.

Click here for the proposed rule.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance, NCUA.