COMMENT CALL: The National Credit Union Administration (NCUA) announced its seventh round of proposed regulatory changes associated with NCUA’s Deregulation Project. The project is an ongoing review of NCUA’s regulations to ensure they are focused on credit unions’ safety, soundness, and resilience. Information on the earlier rounds can be found in the “open comment calls” and the “closed comment calls” Regulatory Advocacy pages of our website.
The NCUA is requesting comments on one new proposal that would clarify agency guidance or eliminate unduly burdensome or duplicative requirements. The proposal is summarized below.
Round Seven
- Records Preservation Program and Appendices – 12 CFR 749. The NCUA is proposing seven changes to 12 CFR 749 of its regulations to improve and update is vital records preservation program and accompanying guidelines. The NCUA is updating part 749 by clarifying the purpose of the regulation, updating the definitions, and removing the appendices. The proposed rule’s purpose is to simplify and streamline part 749.
- Proposed Change 1: The NCUA proposes to remove Appendix A from the regulation.
Impact on credit unions: This change would give credit union boards of directors more discretion and flexibility to determine the process for records destruction.
- Proposed Change 2: The NCUA proposes to remove Appendix B from the regulation because it’s meant as guidance and could lead to potential misinterpretation about what is required.
Impact on credit unions: This change will provide clarity on what is required by regulation and what is meant to be guidance.
- Proposed Change 3: The NCUA is proposing to define the terms vital member services and vital records because the current rule does not specifically define these terms.
Impact on credit unions: Providing these definitions will give credit unions a better understanding of what is considered vital in their records preservation programs.
- Proposed Change 4: The NCUA proposes to add “vital” to the heading of 12 CFR 749 and to 749.0 to help clarify the scope of part 749, which is vital records.
Impact on credit unions: This change will make it clear to credit unions that the scope of 12 CFR 749 is limited to vital records.
- Proposed Change 5: The NCUA is proposing that a records preservation log may be in electronic format.
Impact on credit unions: This change will provide more flexibility for credit unions to manage and store vital records.
- Proposed Change 6: The NCUA proposes to permit destruction of older versions of records unless required to maintain by another law or regulation.
Impact on credit unions: This change will allow credits unions to get rid of unnecessary records.
- Proposed Change 7: The NCUA proposes that if a credit union contracts with a third-party service provider to maintain its vital records, the credit union must maintain effective oversight of the third-party service provider to meet its obligations under part 749.
Impact on credit unions: This change will provide clarity about the meaning of the regulation.
Make your voice heard
The League may comment on some or all of these proposals, depending on the feedback we receive from Wisconsin’s credit unions. Please email Paul Guttormsson with your thoughts on this round of NCUA regulatory relief proposals by May 4, so that our comment letter (which is due May 11) can reflect your positions.
Compliance Roundtable – April 1 (Webinar)
Join a member of The League’s compliance team as they lead a discussion on the latest changes in regulations and need to know information to keep your credit union in compliance. You can find more information or register on our website.