After several months of testing, the NCUA’s CUSO Registry is “open for business.”
I know there has been a lot of discussion and I’ve received quite a few calls regarding the CUSO Registry. Here are the most frequently asked questions and answers:
Q: What is the CUSO Registry?
A: The NCUA finalized a new CUSO regulation in November of 2013, and it became effective June 30, 2014. One of the changes in the regulation was the requirement for CUSOs that Federally Insured credit unions invest in, lend to, or receive services from, that those CUSOs provide certain information as of December 31, 2015, beginning February 1, 2016.
Q: What kind of information needs to be reported?
A: When you log-in to the registry you’ll be prompted to enter:
- General information (name, address, website, contact info)
- Services offered
- Additional service information for CUSOs that provide high risk and complex services (include credit and lending, information technology, custody safekeeping, and investment management services for federally insured credit unions)
- Customer list (report credit union customers only)
- Credit Union Owners (ownership percentage, loan and investment amounts)
- Financial statements (for high risk and complex CUSOs)
- Additional document uploads (corporate CUSOs only)
Q: How do I actually register?
A: NCUA has an online registry located here with detailed instructions. Here’s a wonderful pdf that explains in detail how to submit your report online.
Q: How long do I have to register?
A: Until March 31, 2016
Q: What information will be public?
A: Only credit union regulators (NCUA and credit union State Supervisory authorities) can view all CUSO registry records. The general public will have limited information, such as name, address, contact and website, accessed through the CUSO search function (available mid-2016)
Q: How often do I have to report?
A: Annually each year during the renewal period (February 1 through March 31)
Q: Why is the NCUA doing this? What triggered it?
A: The job of the NCUA is to protect the insurance fund. There have been some losses to credit unions that NCUA alleges were related to investments in CUSOs. This is more of a precautionary measure that we have agreed to support. Having a formal registry of all CUSOs we believe is good for the movement as it creates a central directory of collaborators.
Buddy Gill, Senior Advisor to NCUA Chairman Matz recently issued this statement to NACUSO “Credit union service organizations play an increasingly important role in the operations of many credit unions. CUSOs do everything from lending and loan administration to electronic payment processing, technology services, business continuity and disaster recovery, financial planning and insurance. If managed properly a CUSO can help a credit union provide more products and services to its members, better manage its operations and expand or enhance its revenue streams.”
Mark your calendars for Thursday, February 11th when NCUA will host a webinar on how to use the system. The webinar begins at 2:30pm Eastern time. Here’s the link to the registration page.
