The National Credit Union Administration (NCUA) has opened consultation on three proposals in the 13th round of its Deregulation Project, covering investment reserves, charter conversions and share insurance notices. The proposals would remove a special reserve requirement for federally insured, state-chartered credit unions holding certain nonconforming investments, along with related references in capital, investment and insurance regulations. This continues the agency’s review of obsolete, burdensome and duplicative requirements, under which it finalized 11 rules in August. For federal credit unions converting to a state charter, the package would remove an outdated provision governing continued federal share insurance because the Chartering and Field of Membership Manual already supersedes it. A separate proposal would give federally insured credit unions greater flexibility in delivering share insurance information to members, replacing the requirement to make certain materials available in hard copy. Credit unions would still have to notify members about coverage.
US National Credit Union Administration proposes reserve and share insurance changes in 13th deregulation round
The National Credit Union Administration is consulting on three proposals in its 13th deregulation round, including removal of the special reserve requirement for certain nonconforming investments at federally insured, state-chartered credit unions. The package would also delete duplicative charter conversion provisions and give federally insured credit unions more flexibility in providing share insurance notices while retaining the notification obligation.