A final rule that allows credit unions to use a shorter statement regarding their federally insured status in brief television and radio advertisements goes into effect May 25, according to a Federal Register notice published Wednesday.
During its open meeting April 19, the National Credit Union Administration (NCUA) Board approved the new rule, which gives federally insured credit unions a fourth, shorter version of the agency’s official statement for use in the ads; the new option allows use of the statement “insured by NCUA.”
Under NCUA rules, in most cases federally insured credit unions (FICUs) must use the NCUA’s official statement when advertising; previously, three versions of that statement were permitted: “This credit union is federally insured by the National Credit Union Administration” (the agency’s official advertising statement); the shorter version, “Federally insured by the NCUA”; and as a third option, the official sign may be displayed in advertisements in lieu of the advertising statement.
In adding the fourth option, NCUA said it is providing regulatory relief to credit unions and is focusing on the exemptions relating to radio and TV advertisements that are less than 15 seconds in duration.
Also published in the Register Wednesday is the agency’s final rule on capital planning and stress testing, which goes into effect June 1. The rule, among other things, removes some previous requirements imposed on credit unions that have $10 billion or more in assets. Other changes affect the three tier levels (credit union asset size) and related provisions.
NCUA no longer will be required conduct stress testing for the largest credit unions; the institutions will conduct their own testing. The agency says it reserves the right to do stress testing on covered credit unions if it deems necessary.
NCUA Final Rule, Accuracy of Advertising and Notice of Insured Status