Stop NCUA succession planning proposal
Published by: Sean Brown
September 18, 2024 | Regulatory
Ensuring member data is protected, service standards remain high, and credit unions can innovate and grow should take precedence over tasks such as establishing an overly prescriptive succession plan. The latter will result from the National Credit Union Administration’s (NCUA) newest succession planning proposal. While the League opposed a similar rule from the NCUA in 2022, the NCUA recently published an updated version of the rule that includes several changes.
It is important that regulators consider the cost of the proposed regulation against the member’s perceived benefit. In this case, the NCUA believes the rule will only have a minimal impact on credit union operations but a larger impact on system-wide consolidation.
The League’s analysis of this rule indicates a vastly underestimated burden would be placed on a credit union, with no guarantee that it would achieve the NCUA’s purported goals. The League is asking all credit unions to submit this Call-to-Action, reminding the NCUA that decisions regarding a credit union’s future should be left to those who are in the best position to manage it: credit union boards.
The League is currently finalizing its own comment letter submission. All comments on the proposal are due by Sept. 23, 2024.
Contact Sean Brown for questions or assistance.
