NCUA Releases Regulatory Agenda: What's New on the List?

The Spring 2024 edition of the federal government's unified regulatory agenda has been released. Twice a year, the Regulatory Information Service Center (RISC) gathers information from regulatory agencies about their planned regulatory activities. The Agenda provides "public notice and transparency about proposed regulatory and deregulatory actions within the Executive branch."

As part of the Agenda, the NCUA provides a list of current rulemakings in the pre-rule, proposed rule, and final rule stages. We can use this to see what rulemakings might be progressing next and sometime when we can expect them.

Many of the rules in the Agenda are known. We know what rules have been proposed and the agency has accepted comments on in the last year. Those rules showing up in the Final Rule stage is no surprise. Additionally, the Agenda only listed one item in the Prerule Stage - the Guidelines for Record Retention, which the NCUA just issued earlier this year and accepted comments on - also no surprise there. 

What we can get the most insight from is the Proposed Rule Stage items. On this Agenda there are nine Proposed Rule Stage items. Five of them were listed in the Proposed Rule Stage of the Fall 2023 Agenda, so they are not new to the list. Let's take a closer look at the four items that are new to this part of the Agenda in Spring 2024.

Succession Planning

The NCUA had previously issued a proposed rule on succession planning in early 2022. However, the rule never progressed to the final rule stage of the rulemaking process. The originally proposed rule would require that FCU boards establish processes for succession planning, ensuring the credit union had plans to fill key positions and achieve continuity of operations. The rule also would require directors to be knowledgeable about the FCU's succession plan. In the Agenda, the NCUA Board states that they "have reviewed the comments on the proposed rule and intends to issue a second proposal to require succession plans for both FCUs and federally insured, state-chartered credit unions. In doing so, the Board intends to offer assistance and guidance to streamline the planning process for small credit unions."

On additional interesting wrinkle is that Succession Planning was taken off the NCUA's list of Supervisory Priorities for 2024 after appearing on the list in 2023. They now seem to be preparing to issue a second proposed rule - we'll see if it comes later this year or if they will hold it until next year.

Accuracy of Advertising and Notice of Insured Status

The Agenda states that the NCUA Board is "considering issuing a proposed rule to amend its advertising rule to modernize the rules governing use of the NCUA’s official sign and official advertising statement to reflect how members do business with insured credit unions today, including through digital and mobile channels." This is a brand new item to the Agenda, with an expected date for a Proposed Rule of November 2024.

Executive Compensation Transparency

The NCUA Board is considering issuing a proposed rule to require federal credit unions to provide information on executive compensation to their members.  The proposed rule would require information similar to what state-chartered credit unions provide under IRS Form 990. This is also a brand new item for the Agenda, with an expected date of October 2024 for a Proposed Rule.

Appeals Procedures: Subparts A and B

The NCUA Board is working on a proposed rule that would amend the NCUA’s regulations regarding the procedures for appealing material supervisory determinations and appeals procedures that do not, by law, require a Board hearing.  The proposed rule is intended to clarify the NCUA’s current regulations and provide additional requirements and flexibility for federally insured credit unions to appeal material supervisory determinations made by NCUA staff and initial agency determinations by a program office that the petitioner has a right to appeal to the Board. This is also a brand new item for the Agenda and has September 2024 as the listed date for the Proposed Rule.

We'll be keeping a close eye out for these proposed rules as well as a number of final rules - the NCUA listed six on the Agenda. On the next installment of the REGular Blog we'll be taking a look at the CFPB's Agenda and what items might be of high impact for credit unions. 

Between the Chevron and Corner Post rulings from SCOTUS and the agencies posting full rulemaking agendas, it's certainly an interesting time in the world of regulatory compliance!