ALEXANDRIA, Va. — CUSOs would have to submit financial reports to the NCUA and there would be limits on the investments certain credit unions can make in CUSOs, according to a proposed rule the NCUA sent out for comment on Thursday.
The agency also wants less than adequately capitalized state-chartered federally insured credit unions to get permission from their regulators before making investments in a CUSO. The proposed rule requires CUSOs to use GAAP accounting, prepare quarterly financial reports and get annual audits.
In addition, the rule would expand the definition of CUSO to include CUSO subsidiaries.
"We have our hands tied behind our backs without attaining this information," NCUA Chairman Debbie Matz said.
Board Member Gigi Hyland called it the best way to improve supervision without direct authority to examine vendors, which can only be authorized by Congress.
There is a 60-day comment period before the new rules take effect.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
