NCUA Board Looks at Updating Records Retention Rule

During its relatively brief meeting Thursday morning, the NCUA Board unanimously approved an advanced notice of proposed rulemaking asking for comments on the ways the agency can improve and update its records preservation program regulations and accompanying guidelines in Part 749.

According to the NCUA, Part 749 “requires all federally insured credit unions to maintain a records preservation program to identify, store, and reconstruct vital records in the event that a credit union’s records are destroyed.”

The official notice posted Thursday after the unanimous vote stated that Part 749 “has not been updated in 15 years and may be outdated or at odds with current best practices.” Board members are “interested in feedback on the structure of Part 749 which may be confusing as it currently contains a combination of regulatory requirements and guidance.”

NCUA Board Chairman Todd Harper said, “Times change. Technology changes. There are modern needs and best practices that should be incorporated in policies for records retention and preservation. For these reasons alone, I support this advance notice of proposed rulemaking and welcome comments from all stakeholders on how the NCUA can update, modernize, and streamline its records preservation program regulations and accompanying guidance.”

Harper added, “It is important that federally insured credit unions maintain a robust records preservation program — a program whereby vital records can readily be reconstructed. Maintaining vital records is central to a credit union’s ability to properly serve its members and to the NCUA’s ability to fulfill its supervisory, enforcement and liquidation functions.”

Comments on the advance notice of proposed rulemaking must be received no later than 60 days following publication in the Federal Register.

READ MORE: Advance Notice of Proposed Rulemaking.