ALEXANDRIA, Va.–NCUA has sent a letter to credit unions in advance of the upcoming initial registration period for its new CUSO Registry.
The CUSO Registry is the online system through which CUSOs will report information directly to the NCUA. It will be available for CUSOs to begin registering on Feb. 1, after which CUSOs will have 60 days to complete registration. There is no fee.
“Federally insured credit unions are required to enter into written agreements with any CUSOs they make loans to or invest in,” the NCUA letter states. “Each agreement must be signed before a credit union provides certain information directly to NCUA, and the state supervisory authority where applicable.”
NCUA said that in the event a CUSO fails to register, credit unions may not make additional investments or loans to the CUSO until the CUSO satisfies the annual registration requirement. “Beginning in mid-2016 upon completion of the initial registration period for CUSOs, as part of your ongoing due diligence, you will be able to confirm a CUSO’s registration using the CUSO Registry, NCUA said. “NCUA will notify credit unions when this feature is activated upon completion of the initial registration process for CUSOs.”
NCUA said it created the CUSO registry to “better evaluate” the risks to credit unions. It is part of a broader effort by the agency to oversee third-party risk to CUs.
“The CUSO Registry will also reduce credit unions’ reporting burdens,” NCUA said. “Rather than requiring numerous credit unions to individually submit information about the same CUSO, each CUSO is required to report its information directly to NCUA. This change is also intended to improve data quality about CUSOs since CUSOs themselves are in the best position to provide accurate and contemporary information on their organization.”
NCUA has said it plans to hold a webinar in early February to respond to questions regarding the CUSO Registry.
ALEXANDRIA, Va.–NCUA has sent a letter to credit unions in advance of the upcoming initial registration period for its new CUSO Registry.
The CUSO Registry is the online system through which CUSOs will report information directly to the NCUA. It will be available for CUSOs to begin registering on Feb. 1, after which CUSOs will have 60 days to complete registration. There is no fee.
“Federally insured credit unions are required to enter into written agreements with any CUSOs they make loans to or invest in,” the NCUA letter states. “Each agreement must be signed before a credit union provides certain information directly to NCUA, and the state supervisory authority where applicable.”
NCUA said that in the event a CUSO fails to register, credit unions may not make additional investments or loans to the CUSO until the CUSO satisfies the annual registration requirement. “Beginning in mid-2016 upon completion of the initial registration period for CUSOs, as part of your ongoing due diligence, you will be able to confirm a CUSO’s registration using the CUSO Registry, NCUA said. “NCUA will notify credit unions when this feature is activated upon completion of the initial registration process for CUSOs.”
NCUA said it created the CUSO registry to “better evaluate” the risks to credit unions. It is part of a broader effort by the agency to oversee third-party risk to CUs.
“The CUSO Registry will also reduce credit unions’ reporting burdens,” NCUA said. “Rather than requiring numerous credit unions to individually submit information about the same CUSO, each CUSO is required to report its information directly to NCUA. This change is also intended to improve data quality about CUSOs since CUSOs themselves are in the best position to provide accurate and contemporary information on their organization.”
NCUA has said it plans to hold a webinar in early February to respond to questions regarding the CUSO Registry.