National Credit Union Administration seeks comments on fifth deregulatory package easing credit union conversions, mergers and chartering guidance

The National Credit Union Administration has launched the fifth round of proposed changes under its Deregulation Project, requesting public comment on three proposals intended to clarify agency guidance and remove unduly burdensome or duplicative requirements affecting insured credit unions. One proposal would streamline the process for converting insured credit unions to mutual savings banks by eliminating selected procedural, disclosure and communications requirements, including simplifying compliance for conversion disclosures and allowing credit unions more flexibility to design member disclosures that are effective and clear. A second proposal would keep core disclosure and notification requirements for member votes on mergers and on terminating federal share insurance coverage and converting to private insurance, while removing prescriptive disclosure requirements, providing greater flexibility in member communications and still requiring clear and prominent notice of a proposed termination of federal insurance. The third proposal would rescind Interpretive Ruling and Policy Statement 06-1 on low income designation and community charters, citing that current field of membership requirements are already contained in the Chartering Manual, with the aim of eliminating a redundant standard and reducing the number of sources federal credit unions must consult for community chartering and field of membership compliance. Comments are to be submitted through the Federal Rulemaking Portal using the relevant docket numbers.