NWCUA Regulatory Advocacy Update: WSECU’s Foster-Keddie Among Three from Northwest Appointed to CFPB Councils
September 13, 2012
September 13, 2012
The Consumer Financial Protection Bureau (CFPB) announced appointees to their consumer advisory board and three advisory councils yesterday, and Kevin Foster–Keddie, president and CEO of Washington State Employees Credit Union (WSECU), will represent the Northwest on the CFPB’s 15-member Credit Union Advisory Council (CUAC).
Laurie Mathews of Sound Community bank in Washington was appointed to the Community Bank Advisory Council, and Robert Stoll of Stoll Byrne, a law firm headquartered in Portland, Ore., was appointed to the Consumer Advisory Board. Only the five-member research council did not have a west coast representative initially appointed.
“It is good to see there is appropriate representation from the Northwest,” John Annaloro, CEO of the Northwest Credit Union Association (NWCUA) said. “I am confident Kevin Foster-Keddie will provide smart academic perspectives that can benefit all credit unions, both in our region and nationally.”
Foster-Keddie, who also serves on the Western CUNA Management School board of directors, has received numerous industry awards, including a special recognition award for his work to promote shared branching, the California League Eternal Flame award for support of small credit unions, the National Association of Federal Credit Unions’ (NAFCU’s) Professional of the Year Award, and the Credit Union National Association’s (CUNA’s) Bergengren Award for High Achievement for his efforts to secure passage of the Credit Union Membership Access Act in 1998. He understands well the regulatory burden facing credit unions.
“In 1987, I helped start a Broker Dealer CUSO with $25,000 in net capital prior to the Sarbanes-Oxley Reform (passed in 2002),” Foster-Keddie said. “Today, I doubt you could start a Broker Dealer CUSO with less than $10,000,000 in net capital. Sarbanes-Oxley had approximately 60 rules. Dodd-Frank has over 250 rules.”
The councils will advise generally on the CFPB’s regulation of consumer financial products or services and may provide information, analysis and recommendations to the bureau. The Credit Union Advisory Council is specifically tasked with providing the CFPB with recommendations to inform its policy development, research, rulemaking and engagement functions. The council will also work on new opportunities for interaction between credit unions and CFPB staff.
Members of CUAC were appointed by CFPB Director Richard Cordray. One criteria used in selecting members was that the appointee’s credit union have $10 billion or less in total assets and cannot be an affiliate of a company with total assets greater than $10 billion.
“I want to make sure that the CFPB understands that the rules and regulations being promulgated ultimately disadvantage smaller credit unions,” Foster-Keddie said. “Smaller credit unions have more relative costs associated with compliance”
Foster-Keddie indicated that he would be happy to share concerns of other Association members with the CFPB along with his own if the opportunity presents itself. The CUAC will convene publicly and provide public summaries or reports of their meetings, with the first scheduled for Oct. 11, 2012. Members of both councils will serve two-year terms and are not eligible for reappointment.
The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues, please contact Director of Regulatory Advocacy John Trull at firstname.lastname@example.org, or at 503.350.2209.