The National Credit Union Administration has requested comment on three proposals in the 12th round of its Deregulation Project, targeting obsolete or unduly burdensome requirements while retaining safeguards for credit union safety and soundness. The consultation follows the agency’s August finalization of 11 rules from the project’s first completed round. The proposals would simplify fidelity bond purchasing, renewal and coverage requirements for federally insured and corporate credit unions while maintaining adequate coverage and oversight of approved bond forms. They would also clarify that federal credit unions may apply directly to the NCUA Board for approval of activities not already recognized as incidental powers, without first obtaining an advisory opinion. Changes to the Central Liquidity Facility rules would incorporate certain measures adopted during the COVID-19 pandemic, remove outdated provisions, streamline membership and reporting requirements, and provide more flexibility for capital stock subscription adjustments.
National Credit Union Administration launches 12th deregulation round covering fidelity bonds, incidental powers and liquidity rules
The National Credit Union Administration has opened the 12th round of its Deregulation Project with three proposals covering fidelity bonds, incidental powers and the Central Liquidity Facility. The changes would simplify bond requirements, clarify direct applications for new incidental powers, and modernize liquidity facility membership, reporting and capital stock rules while retaining core safeguards.