The NCUA board adopted a final rule addressing credit union service organization (CUSO) supervision at its Thursday open board meeting. The final rule was revised from the agency's earlier proposal. CUNA says that it still has some concerns about the authority of the agency to exercise direct authority over CUSOs.
Under the proposal released in 2011, CUSOs and their subsidiaries would be required to directly file their financial statements with the NCUA, and to forward those reports to state supervisors. The final keeps those controversial provisions. However, the NCUA noted that the final rule is more limited in scope than the proposed rule: The final rule is targeted to CUSOs that engage in high-risk or complex activities such as credit lending, information technology and custody, safekeeping and investment management. The final rule will become effective on June 30. A registry for CUSOs to file their documents with the NCUA will be finalized in late 2015.
Among CUNA's concerns is that the Federal Credit Union Act does not confer authority over CUSOs to the federal credit union regulator except through the oversight of credit unions. CUNA believes that the NCUA should work with natural person credit unions that obtain services from the CUSOs to provide the financial information on CUSOs the agency needs. The agency has said that this method is inefficient and restricts its ability to conduct offsite monitoring and evaluate systemic risks posed by CUSOs.