WASHINGTON–CUNA is urging NCUA to review practices and policies put in place during the financial crisis to measure their efficacy.
In a letter to the agency as part of the comment period on the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), CUNA acknowledged the financial crisis merited numerous new rules and additional scrutiny. But five years later many of those rules and practices could use a revisiting, according to CUNA.
In particular, CUNA urged review of the requirement imposed in §704.13, which requires the recordation of votes, saying it “strongly believes these matters are better left to the bylaws as opposed to regulation. “
In addition, CUNA noted that in 2011 NCUA also increased the reporting requirements to impose additional audit and reporting requirements pursuant to §704.15. Many of the provisions mirrored those required of banks by the Federal Deposit Insurance Corporation (FDIC) or Sarbanes-Oxley, CUNA said, saying they are not appropriate for corporate credit unions, and that the NCUA should revisit those additions and modify them accordingly to reduce regulatory burden on corporate credit unions.
CUNA also offered suggestions around improvements around rules for directors, officers and employees, as well as money laundering.
Earlier, NASCUS and NAFCU offered comment on their own to NCUA on EGRPRA, as CUToday.info reported here.