(Jan. 21, 2022) Under the last portion of the letter, on the agency’s exam program – and particularly on “recording of official meetings” – the letter holds a footnote stating that the guidance provided in the letter on recordings of exit meetings with examiners only applies to NCUA examiners.
“State examiners will follow guidance provided by the state supervisory authority,” the footnote reads. “Generally, the NCUA will defer to the state supervisory authority for state-chartered credit union meetings.”
During a virtual appearance this week at the Volunteer Leadership Institute (VLI) conference in Waimea, Hawaii, NASCUS President and CEO Brian Knight suggested that NCUA’s disclaimer about deference to state authority on federally insured, state chartered credit union (FISCU) exams should have been more prominent than a footnote so as to avoid potential confusion.
“We have 45 states and many of the states don’t think (recording) is going to be beneficial,” Knight told the group, according to reporting by CUToday.info. Referring to state regulators, Knight added “they do think it creates a chilling effect. They either do not allow it or discourage it intensely.”
Knight made his remarks to the conference during a session with NCUA Board Member Rodney Hood, which was moderated by HI Credit Union President and CEO Dennis Tanimoto. Knight participated in the session via the Internet from NASCUS headquarters in Arlington, Va. The conference is sponsored by the consulting firm Rochdale Paragon.
In other comments, Knight told the group:
- State regulators have great familiarity with some of the most sophisticated financial services transactions, products and services being offered, given the other institutions their agencies may supervise (including industrial savings and loans, banks, money transmitters and other entities). He said that expertise flows out of the state system and benefits the entire credit union system.
- Issues to watch for the state system in the coming year, Knight indicated, include third-party vendor due diligence and management, and BSA/AML issues.
- The state system’s service and performance during the coronavirus pandemic is worth of praise, and that the partnership between state and federal regulators has been “fantastic.”