PRESS RELEASE
March 30, 2007
ARLINGTON, VA — The National Association of State Credit Union Supervisors (NASCUS) submitted comments on March 23 to the Securities and Exchange Commission (SEC) and the Federal Reserve Board (Fed) recommending that credit unions be included in their joint proposed rule that grants exemptions for banks for “broker” and “dealer” activities.
In its comment letter, NASCUS expressed concern that unless state-chartered credit unions are afforded the same treatment as commercial banks and savings institutions, the powers granted to credit unions by state legislatures and state regulators will be unnecessarily preempted or the rule will trigger redundant and costly examination and oversight. Additionally, credit unions will not be able to cost effectively provide the same products and services.
NASCUS has written to the SEC three times regarding the need to provide credit unions with the same exemptions for “broker” and “dealer” activities. The proposed rules for former Regulation B, now referred to as Regulation R, include language to provide credit unions with like exemptions for the definition of “broker” and “dealer” for specific activities. NASCUS stresses that credit unions need equivalent exemptions as proposed for other financial institutions allowing for networking, sweep accounts and trust and fiduciary activities.
In addition, NASCUS emphasizes the importance of parity for credit unions. More than 11 percent of state-chartered credit unions offer investment and insurance sales activities. Further, more than 17 million consumer members are served by these credit unions. NASCUS asks that Regulation R include language to provide credit union exemptions or a separate formalized exemption be promulgated as a uniform set of rules for credit unions. “Uniform standards will offer a legal certainty for credit unions performing these activities,” NASCUS stated. “Credit unions and their consumer members will be better served if credit unions are granted these exemptions.”
NASCUS believes that exemptions should apply equally to all credit unions, regardless of their choice of charter type or insurance provider. NASCUS states that there is no distinction between the examination and supervision for federally insured or privately insured credit unions. “The common structure, governance, regulation and examination of state and federal credit unions, regardless of insurance or charter type, should outweigh distinguishing between credit unions for exemptions granted for the definition of ‘broker’ and ‘dealer’ for certain activities,” NASCUS stated.
NASCUS appreciates the opportunity to provide comments on proposed changes to Regulation R. NASCUS’ comment letters can be found on the NASCUS Web site at www.nascus.org under Regulatory Affairs.
Information
Contact:
Kate Hartig, Director of Communications,
(703) 528-0669 or kate@nascus.org
The
NASCUS mission is to enhance state credit union
supervision and advocate a safe and sound state
credit union system. Founded in 1965, NASCUS
represents all 48 state and territorial credit
union supervisors and the NASCUS Credit Union
Advisory Council, which is made up of nearly
500 of the nation's more than 3,800 state-chartered
credit unions. |
