Calling it the agency’s 12th round of regulatory relief, the National Credit Union Administration (NCUA) on Wednesday released proposed changes to its rules on fidelity bond and insurance coverage, incidental powers, and the Central Liquidity Facility (CLF).
All three were published Thursday in the Federal Register with a Dec. 14 public comment deadline:
- Fidelity bond and insurance: The agency says its fidelity bond and insurance proposal would simplify fidelity bond requirements for federally insured credit unions and corporate credit unions by removing or modifying certain requirements related to fidelity bond purchases and renewals (centered on who approves them), approved forms, and guidance on bond coverage levels.
- Incidental powers: The agency’s proposal would clarify that federal credit unions (FCUs) may apply directly to the NCUA Board for approval of an activity that is not already recognized as an authorized incidental power. FCUs may seek guidance from the NCUA Office of General Counsel if they wish it, but that has always been optional, it says.
- Central Liquidity Facility (CLF): This proposal would update rules on this liquidity facility for credit unions by incorporating interim final rule changes adopted and published in 2020 and 2021 during the COVID-19 pandemic, removing provisions that lapsed under those measures, and simplifying CLF membership and reporting requirements. The agency says the proposal would also provide additional flexibility for capital stock subscription adjustments and make technical updates to improve clarity and consistency.
Federal Register notice – Fidelity bond and insurance
Federal Register notice – Incidental powers
NCUA release: NCUA Announces Twelfth Round of Deregulation Proposals
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