NACUSO said its stated goal is to maximize the percentage of CUSOs and their credit union owners the association represents when negotiating with NCUA.

NACUSO said it plans to use the advocacy fund to form and present its message to individuals in positions of power with the goal of changing the regulatory climate.

“This includes the hiring of professionals such as attorneys, lobbyists, public relation specialists and economists. The fund will also cover travel expenses of NACUSO representatives and industry leaders to meet with lawmakers and regulators,” the letter said.

Whether or not NACUSO is going to sue the NCUA over the CUSO rule is listed among the frequently asked questions at the bottom of the letter.

“The short answer is that a final decision has not been made. Suing the regulator is a step that should not be taken lightly. We are in the process of discussing the industry's concerns with NCUA and will evaluate their response,” the letter said.

According to Antonini, the advocacy fund is needed since the NCUA has increased its efforts in Congress to regulate CUSOs.

“NCUA has stepped up its direct examination of CUSOs. There is no real difference in the scope of a CUSO exam and credit union exam in the minds of many of the examiners,” the letter said. “Having a few meetings a year with NCUA is no longer sufficient to protect the regulatory climate for CUSOs. The pressures have increased and so must our response.”

NCUA Public Affairs Specialist John Fairbanks said the agency had no comment regarding the announcement.

The NCUA's CUSO rule was finalized in November 2013. It requires CUSOs that offer complex or high-risk services such as credit and lending, information technology, and custody, safekeeping and investment management services to report more detailed information, including financial statements and general customer information. While the rule went into effect June 30, the reporting requirements won't start until Dec. 31, 2015.

NACUSO has been critical of the NCUA's proposed risk-based capital rule, saying the risk weighting of 250% assigned to investments in CUSOs is arbitrary, not supported with any empirical data and counter-productive to the collaborative risk mitigating model that CUSOs represent as a net income resource for credit unions. The NCUA has said it will make major adjustments to risk weights in its final rule.