ARLINGTON, Va. – NAFCU is joining other trade associations and credit unions that have thrown their support behind the SEC's Regulation B proposal that would grant certain broker/dealer exemptions to credit unions. However, it takes issue with the SEC's decision not to extend safekeeping and custodial services exemptions to credit unions. SEC officials have said that they have not received enough evidence that credit unions currently engage in safekeeping and custodial services and therefore have not extended this exemption. In a Sept. 1 comment letter, NAFCU President/CEO Fred Becker wrote the Association is concerned “about the impact of this legal uncertainty.” Becker wrote should a FCU choose to offer a service that falls under this exemption, “that credit union will be placed at a competitive disadvantage with other institutions subject to the exemption” and “a FCU should not be forced to register as a broker-dealer in order to offer a service it is otherwise legally permitted to offer and that other institutions may offer without being subject to registration requirements.” The SEC's Regulation B proposal would include extending exemptions to credit unions such as engaging in third-party networking, sweep accounts and trust and fiduciary services without having to register with the SEC. CUNA, NCUA, dozens of credit unions, state leagues and other industry vendors have expressed support of the exemptions while a few are unsure whether the safekeeping exemption is necessary for credit unions at this point. The comment period for the proposal ended Sept. 1. The SEC has said final implementation is expected by the end of the year. [email protected]