Aug. 21, 2015
New legal opinion by NCUA:
‘no’ on OTR rulemaking, notice/comment
NCUA has posted on its website a legal opinion – dated Aug. 18 – addressing the applicability of the Administrative Procedure Act (APA) toward treatment of the overhead transfer rate as a rule, subject to “notice and comment.” Not surprisingly, the 16-page opinion by the agency’s office of general counsel disagrees with a legal analysis developed by NASCUS that concludes that the OTR is subject to public comment. “Consistent with our prior legal analysis of the issue, we conclude that the APA does not require either OTR calculations or processes to be developed under APA notice and comment procedures. Further, nothing in the [NASCUS] Report provides a sound legal basis for requiring NCUA to change its position,” the agency legal office wrote. We are studying the agency opinion carefully to consider its impact, if any, on our legal analysis (which we stand behind). In any event, this is just another step in the process. We remain committed to bringing the OTR before the public for review before it is adopted by the NCUA Board – and will keep working toward that end.
Congratulations to Illinois for signing on to two interstate branching agreements – including the NASCUS-developed 2015 Nationwide Cooperative Agreement – opening the doors for credit unions in the states to branch into 16 other states, and for those states to open branches in Illinois. State Department of Finance and Professional Regulation Secretary Bryan Schneider signed the 2015 nationwide co-op agreement, and the Southeastern Regional Cooperative Interstate Agreement, earlier this week. The two agreements mean that interstate branching can proceed among credit unions in Illinois and Idaho, Indiana, Kentucky, Michigan, Ohio, Oregon, Washington, West Virginia, Wisconsin, Alabama, Florida, Georgia, Mississippi, Missouri, North Carolina and Tennessee. The growth of the coverage of both of these agreements is critical to the future of the state credit union system – and we congratulate and thank Secretary Schneider for signing on. Illinois and the other 16 states are actively participating in the strength and growth of the state credit union system, as well as promoting interstate commerce and cooperation on a reciprocal basis among the participating states.
Our fall calendar of schools and conferences is rapidly filling up, particularly with events geared to fostering communications between state supervisors and the credit unions they regulate. We call these events “Industry Days” – one-day programs that focus on the latest developments affecting credit unions (which can include regulatory, legislative and economic updates), with an emphasis on dialogue among credit union leaders and state supervisory authorities on how these developments affect the local credit union system. Two “Industry Days” are on the books already – Sept. 22 for Ohio (in Columbus, and known locally as “Ohio Credit Union Day”), and Nov. 3 in Michigan (in Grand Rapids). More “Industry Days” for other states are in the works (we’ll keep you informed right here) – and let us know if you are interested in hosting an “Industry Day” in your state. See the links below for other events in our fall educational calendar – and keep an eye open as we add more in the weeks to come.
2015 NASCUS State System Summit, Oct. 21-23 in New Orleans
NASCUS/Connecticut Cybersecurity Basics Conference for CUs, Sept. 14, 2015, Cromwell, Conn.
Ohio Credit Union Day, Sept. 22
Colorado Directors’ College, Sept. 22
NASCUS Regulatory Roundtable/California, Sept. 28-30, San Francisco
Michigan Industry Day, Nov. 3
NASCUS/CUNA BSA Conference, Nov. 15-18, 2015, Ft. Lauderdale, Fla.
Speaking of educational events: Monday is the opening day of our Cybersecurity Symposium in Denver. The agenda for the two-day program is packed (as is the registration list) with 13 hours of educational presentations, panel discussions, demonstrations and group discussion – featuring more than 10 experts in cybersecurity making presentations and leading discussions with the group in 15 separate sessions and forums. Still not convinced that cybersecurity is a big deal? Wall Street certainly needs no convincing. According to an item in Forbes last week, venture-backed cybersecurity companies around the world raised $1.9 billion last year, which was a record. So far this year (through June), venture firms invested $1.2 billion into cybersecurity startups – nearly two thirds of the entire 2014 investment in just six months.
Patrick Keefe, Director of Communications, email@example.com or (703) 528-5974
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