ARLINGTON, Va.—NASCUS said it is “disappointed” in NCUA’s new voluntary mergers rule.
The NCUA board Thursday finalized a rule amending the procedures and timeframes that federally insured credit unions, including federally insured, state-chartered credit unions, must follow for voluntary mergers with another credit union. The rule provides greater transparency in merger compensation to top executives of the acquired CU, and provides members with more time to make a decision on the combination.
"We are disappointed that NCUA didn’t heed the recommendations in our comment letter but is instead choosing to add more burden to state-chartered credit unions, which already practice full transparency and disclose compensation in Form 990s,” said Ito. “Voluntary mergers between healthy, well-managed credit unions are a business decision, not an insurance nor safety and soundness matter. State regulators, as chartering authority, already set state charters' disclosure requirements. NCUA is duplicating the role of state supervisory agencies, which is counter to efforts to reduce regulatory burden and to limit unnecessary redundancy."