3 modifications voiced for SRC procedure changes

Aug. 8, 2017 -- NASCUS supports proposed changes to procedures for appealing material supervisory determinations to NCUA’s Supervisory Review Committee, with some modifications, the association wrote in a comment letter filed Monday.

The proposal, as NASCUS points out, would (among other things) create a pool of candidates from which specific Supervisory Review Committee (SRC) members who would be empaneled to hear an appeal, expand the subjects eligible for appeal to an SRC, codify the appeals process within NCUA’s rules rather than as an interpretive ruling and policy statement (IRPS), and create an intermediate optional review for petitioners.

NASCUS suggested three modifications to the proposal:

  • Clarify that the review process applies to NCUA supervisory determinations to reduce confusion over applicability of rules given the overlap of jurisdictions of the federal agency and state regulators. NASCUS recommended that the agency emphasize the applicability of the review procedures exclusively to determinations made by NCUA staff.
  • Enhance transparency with additional reporting of decisions to reject a petition for review. NASCUS pointed out that “allowing stakeholders to determine the number of petitions granted review or rejected” enhances stakeholders’ ability to evaluate the effectiveness of the enhanced SRC process and instill more confidence in the process.
  • Codify the SRC process, as it applies to FISCUs, within Part 741 of NCUA rules, which ostensibly contains all rules applying to the state-chartered credit unions. “To the extent that the SRC review process contains deadlines and instructions for FISCUs, those provisions should appear in the share insurance rules section where a FISCU would know to look for them,” NASCUS wrote.

LINK:
NASCUS Comments: Appeals procedures