NCUA has issued a proposed requirement that credit union service organizations (CUSOs) file their financial statements with the agency. Subsidiaries of CUSOs would have to do similarly. The financial statements would need to be forwarded to the appropriate state supervisor, as well if a federally-insured state-chartered credit union (FISCU) has invested in or made loans to the CUSO. NCUA has the authority to inspect the books and records of some CUSOs but not all.
The proposal would also require FISCUs to comply with certain requirements regarding CUSOs that federal credit unions (FCUs) must currently meet, such as requiring a CUSO to agree to follow NCUA rules on accounting and allow supervisory access to its books and records, and making FISCUs subject to NCUA‟s CUSO investment limitations for less than adequately capitalized credit unions.
NCUA says the reason for its proposal is the lack of accurate and complete financial information about CUSOs “and their potential impact on the NCUSIF.” NCUA says it is also concerned about undercapitalized credit unions investing in CUSOs.
CUNA issued a comment call and will take comments until September 16. Credit unions have until September 26, 2011 to submit comments to NCUA. You can access CUNA’s analysis and comment call here.
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