Agency enters next phase of new ‘proof of concept’ application for new credit unions

The federal credit union regulator’s “proof of concept” application for chartering new federal credit unions is entering its second phase of review, according to a notice of “information collection” to be published Tuesday in the Federal Register.

The National Credit Union Administration (NCUA) plans to issue the second phase for a 30-day comment period, following up on a 60-day comment period in the first phase, which started in March. Then, the agency unveiled its new “proof of concept” application for groups wishing to obtain a federal credit union charter; comments were taken until May 10.

The application, submitted over an automated system, is intended to assist organizing groups in demonstrating that they have thoroughly evaluated the proposed credit union’s operations by documenting the most critical elements of a new charter, the agency said in March. Those elements include the purpose and core values, field of membership, capital, and subscribers of the credit union, the agency said.

Ultimately, according to NCUA, the agency plans to review the data it receives and provide guidance before a formal application for a new FCU charter is submitted. The aim, according to NCUA: “to identify the level of understanding an organizing group has before they make a formal charter application submission.”

NCUA Information Collection Activities; Proposals, Submissions, and Approvals