Proposed Rule on Training for New Board Members
About this episode
The episode discusses the NCUA's proposed rule to eliminate the financial literacy training deadline for new federal credit union directors.
www.marktreichel.com https://www.linkedin.com/in/mark-treichel/ NCUA Proposes to Eliminate Financial Literacy Training Deadline for New FCU Directors The NCUA Board has issued a proposed rule that would remove the requirement that each federal credit union director attain a working familiarity with basic finance and accounting within six months of being elected or appointed. What NCUA is proposing: Eliminate Section 701.4(b)(3), which currently sets a six-month deadline for new FCU directors to achieve working familiarity with finance and accounting, including the ability to read balance sheets and income statements and ask substantive questions of management and auditors. Redesignate the remaining paragraph accordingly. Why the change is occurring: The Board now views the six-month rule as overly prescriptive. FCU members are in the best position to elect qualified directors. The Federal Credit Union Act gives each FCU board "general direction and control" but does not direct NCUA to set specific director qualifications. The proposal aligns with the administration's deregulatory priorities under Executive Order 14192. What is NOT changing: The Board still believes directors must…
Topics covered
- credit union governance
- board member training
- financial literacy
- NCUA regulations
- deregulatory priorities
Keywords
- NCUA
- financial literacy
- board members
- federal credit unions
- regulatory changes
- deregulation
- training requirements
Mentioned in this episode
Organizations: NCUA, Federal Credit Union Act, CAMELS Rating System, Executive Order 14192
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