NCUA takes third look at succession planning rules
Published by: Sean Brown
June 25, 2025 | Regulatory
A democratically elected, member-owned board is one of the pillars that make credit unions different. Credit union boards are tasked with owning and dictating credit unions’ focus, direction, and strategic approach to almost every facet of member service. However, recent regulations from our federal regulator have begun to chip away at who decides a credit union’s future, and how. The National Credit Union Administration (NCUA) has been drafting, publishing, and seeking to finalize a rule regarding succession planning for several years.
First in 2022, and then again in 2024. The most recent proposal was alarmingly problematic. Specifically, it reached deep into the credit union organization and extended its own jurisdiction from not just federally chartered institutions, but now federally insured institutions. The League commented on both, but ultimately, at the end of last year, the NCUA published its final rule. However, due to an Executive Order from the White House, titled “Regulatory Freeze Pending Review,” the NCUA was required to reopen for comment any final rule not yet effective. Thus, the League took this unique opportunity and doubled down, arguing that while the final rule was much more refined, the argument still exists that the NCUA should not dictate credit union board direction or decision making.
Succession planning, like any strategic decision, should be left to the credit union’s board members. The League will continue to monitor this rule as it moves through the administrative process.
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