ARLINGTON, Va.–NAFCU told NCUA it can go even further in providing regulatory relief as part of the changes the agency has proposed to Part 745 of its Rules and Regulations governing share insurance coverage for IOLTAs.
While supportive of NCUA’s efforts to codify the Insurance Parity Act into Part 745, in a comment letter to the agency NAFCU Director of Regulatory Affairs Alicia Nealon said the association believes "that NCUA’s reliance on the existence of a “fiduciary capacity” unnecessarily restricts the relief Congress intended with the Act’s passage."
"NAFCU recommends NCUA adopt language in Part 745 that considers the presence of a fiduciary relationship as evidence of an “other similar escrow account,” but not as a determinative factor," Nealon said in the letter. "NAFCU suggests that NCUA consider including accounts that exhibit a relationship of trust and confidence for the benefit of another, though it may not rise to the requisite level of a fiduciary relationship."
The full letter can be found in CUToday.info’s The Gov section here.