OCU: Letter CU 1-05 SEC Rule Impacting Broker-Dealer Networking Arrangement with Credit Unions (April 2005)

The OCU has received questions from credit unions about the U.S. Securities and Exchange Commission’s proposed rule impacting broker-dealer networking arrangements with credit unions. Broker-dealers are now requiring credit unions to sign new networking agreements directly, rather than through CUSOs and some misinformation was published in the trade press that has created confusion. OCU and the DFI Division of Securities clarify the situation and assure credit unions that under current Wisconsin law and rules, they are permitted to enter directly into networking agreements with the broker-dealers without needing the CUSO to do so.