WASHINGTON–CUNA is challenging the NCUA’s position on fidelity bonds that requiring a mandatory option to extend the discovery period will not result in additional fees for credit unions.
In a comment letter in response to NCUA’s proposed rule to amend fidelity bond regulations, CUNA said the result of the plan is insurers will likely charge credit unions by increasing their premiums to account for the additional cost of claims.
Other concerns expressed by CUNA in its letter include an objection to the recommended mandate on board members rather than management to sign fidelity bond applications. CUNA is calling on NCUA to remove the provision from the final rule, arguing credit unions are best positioned to determine whether management or their boards have the expertise to sign and approve applications and renewals.
The letter does include support for NCUA’s proposal to sunset its approval on all bond forms ten years after the form is approved. CUNA further encouraged the NCUA to restart the ten-year period whenever the Agency chooses to review a form before the period would have originally expired.
The full letter can be read here.