News & Highlights

NACUSO 2006 CUSO Collaboration and Cooperation Award

NACUSO’s core purpose:

To be the catalyst for instituting collaboration, innovation and reinvention
of the credit union industry.

In keeping with that core purpose, during our annual conference at the
Wynn Las Vegas Resort on May 16th we proudly presented our 2006 CUSO Collaboration
and Cooperation Award to:

CU Direct Connect of Centennial, Colorado.

CU Direct Connect

NACUSO Chairman Tom Davis, left, and Director Judy Sandberg
present the NACUSO 2006 CUSO Collaboration and Cooperation Award to Steve
Anderson, president/CEO of CU Direct Connect.

Two CUSOs were recognized for Honorable mention. They are:

CU Business Group, LLC, of Portland, Oregon
and
Member Business Lending, LLC, of South Jordan, Utah.

Honorable Mention

Kent Moon, left, president/CEO of Member Business Lending,
and Mike Oliver, VP of operations for MBL and Larry Middleman, CEO of CU
Business Group proudly show their awards.

About the Awards

The criteria for the award is based on the following:

  • Thoughtful Leadership and Critical Thinking
  • Value Created through the use of Collaboration
  • Innovation in Organization Design
  • Implementation and Execution
  • Results, Outcomes, and Performance Measurement

The Judges were Thomas Condit, Trustee of the Trust for Credit Unions
and former CEO of the National Cooperative Bank, Tom Davis, PhD, President/CEO
of Davis and Company and newly elected NACUSO Chairman and Judy Sandberg,
VP of Strategic Direction, Gateway Services Group, LLC and NACUSO Director.

The Evaluation & Scoring Methodology was as follows:

  • All nominations scored independently by the judges using a criterion
    rating
    of 1-5.
  • Individual scores transferred to Master Scoring Matrix.
  • Results tabulated to determine the winners.

NACUSO Congratulates the Winners on their Achievement!

Click here to view 2004 award recipient

(more…)

Taxation of CUSOs and CUSO Reporting Requirements

NACUSO Regulatory Alert
To: NACUSO Members
Re: Taxation of CUSOs and CUSO Reporting Requirements
Date: April 27, 2006

The House of Representatives Ways and Means Committee has been examining non-profit organizations to determine whether their respective tax exemptions continue to be warranted. With mounting deficits, it is not surprising that the federal government is revenue conscious. Credit unions are included within the scope of the Committee’s inquiry. In the examination of credit unions, the Committee discovered credit union service organizations. The Committee became aware that CUSOs (1) provide services that credit unions cannot offer, (2) the services are often provided in limited liability companies and limited partnerships that can pass income to credit unions on an income tax free basis and (3) the services can be offered to non-members. (more…)

Keynote Speakers to Illuminate Pillars of NACUSO's National Center for Collaboration and Innovation at the NACUSO 2007 Annual Conference

Newport Beach, Calif. (Feb. 16, 2007) – The National Association of Credit Union Service Organizations (NACUSO) recently announced their four keynote speakers scheduled to address credit union and CUSO executives attending NACUSO’s 2007 Annual Conference, in Las Vegas, Nevada.  The annual conference will be conducted April 30 through May 3, at the Wynn Las Vegas Hotel.  NACUSO will officially unveil details of its new National Center for Collaboration and Innovation at the annual conference.  The National Center was created to strategically solve tough industry issues and assist credit unions and CUSOs to successfully evolve together, by turning innovative ideas into reality.  Each distinguished speaker will add clarity to one of the “four pillars” that support the National Center:  critical thinking, collaboration/cooperation, innovation, and implementation.      

To shine light on the supporting pillar of innovation, NACUSO announced that guest speaker Nicholas G. Carr will present his topic, “The Prudent Innovator,” at the May 1 general session.  Noting that innovation isn’t free, Carr argues that organizations should focus their creativity on a few critical areas – the ones capable of producing a competitive edge – and be ruthless imitators elsewhere.  He will offer NACUSO attendees a series of pragmatic and surprising strategies to increase the odds that innovation initiatives and investments really pay off, and illustrate those strategies with compelling examples.  A former editor of the Harvard Business Review, Nicholas Carr is an acclaimed business writer and speaker whose work centers on strategy, innovation, and technology.  Carr’s 2004 book Does IT Matter? Information Technology and the Corrosion of Competitive Advantage set off a worldwide debate about the role of computers in business.

Speaking on May 2, Michael R. LeGault, author of the 2006 book Think! Why Crucial Decisions Can’t Be Made in the Blink of an Eye, will deliver the morning session’s keynote address and take attendees to the heart of the critical thinking pillar.  LeGault is outraged by the downward spiral of American intellect and culture.  “If bestselling books are advising us to not think,” LeGault argues, “it comes as no surprise that sharp, incisive reasoning has become a lost art in the daily life of Americans.  Somewhere along the line, the Age of Reason morphed into the Age of Emotion; this systemic erosion is costing time, money, jobs, and lives in the twenty-first century, leading to less fulfillment and growing dysfunction.”  LeGault will provide a bold, controversial analysis of the causes of, and solutions for, the erosion of growth and market share at many established American companies.  LeGault is an award-winning National Post editor, writer, and a former columnist for the Washington Times

Business consultant Karen E. Purves will provide the final keynote address during the May 3 closing general session.  Purves will provide annual conference attendees a fresh perspective on problem solving methods, and a variety of tools to spark innovative thinking, while sustaining an innovative environment.  Known for her infectious energy and humor, Purves has conducted time-proven, content-driven seminars at a diverse list of organizations from Pfizer to Deloitte, and the United States Department of Agriculture to Motorola.  She brings a myriad of experiences to her speaking engagements, including testifying before a U.S. Congressional Subcommittee and performing improvisational comedy at “The Second City” Mainstage Theater in Chicago.

National Credit Union Administration (NCUA) Vice Chairman Rodney E. Hood will deliver the May 2 afternoon session keynote address, to illuminate the importance of collaborative and cooperative
footing for NACUSO’s National Center and the industry in general.  “The Vice Chairman was
incredibly well received at our fall Business Services Collaborative,” stated Vic Pantea, NACUSO
interim president and president/COO of Member Gateways, LLC in South Bend, Indiana.  “While he may further endorse the credit union and CUSO relationship at the annual conference, I fully anticipate that Rodney Hood will challenge all of us with his own special vision for the industry.” Delivering his keynote address to an enthusiastic membership at the second annual NACUSO 2006 Business Services Collaborative, held in Chicago this past November, Hood challenged credit unions to engage credit union-owned solutions saying, “CUSOs are the ones with the infrastructure, and because of what they’re doing, you can give them the synergies and efficiencies that they need to do business lending effectively.”

In addition, the 2007 Annual Conference will have a distinct group of industry leaders conducting
breakout sessions May 1 and 2.  “CUSOs are the ideal mechanism to do the heavy lifting for credit
unions, for the actual implementation of strategies derived from critical thinking, collaboration, and
innovation,” Pantea emphasized.  “Credit unions that utilize the National Center for Collaboration
and Innovation will look to NACUSO, and its CUSO members, for the final pillar – implementation –
and answers that lead to faster results.”

# # #

Download Adobe PDF

Keynote Speakers to Illuminate Pillars of NACUSO’s National Center for Collaboration and Innovation at the NACUSO 2007 Annual Conference

Newport Beach, Calif. (Feb. 16, 2007) – The National Association of Credit Union Service Organizations (NACUSO) recently announced their four keynote speakers scheduled to address credit union and CUSO executives attending NACUSO’s 2007 Annual Conference, in Las Vegas, Nevada.  The annual conference will be conducted April 30 through May 3, at the Wynn Las Vegas Hotel.  NACUSO will officially unveil details of its new National Center for Collaboration and Innovation at the annual conference.  The National Center was created to strategically solve tough industry issues and assist credit unions and CUSOs to successfully evolve together, by turning innovative ideas into reality.  Each distinguished speaker will add clarity to one of the “four pillars” that support the National Center:  critical thinking, collaboration/cooperation, innovation, and implementation.      

To shine light on the supporting pillar of innovation, NACUSO announced that guest speaker Nicholas G. Carr will present his topic, “The Prudent Innovator,” at the May 1 general session.  Noting that innovation isn’t free, Carr argues that organizations should focus their creativity on a few critical areas – the ones capable of producing a competitive edge – and be ruthless imitators elsewhere.  He will offer NACUSO attendees a series of pragmatic and surprising strategies to increase the odds that innovation initiatives and investments really pay off, and illustrate those strategies with compelling examples.  A former editor of the Harvard Business Review, Nicholas Carr is an acclaimed business writer and speaker whose work centers on strategy, innovation, and technology.  Carr’s 2004 book Does IT Matter? Information Technology and the Corrosion of Competitive Advantage set off a worldwide debate about the role of computers in business.

Speaking on May 2, Michael R. LeGault, author of the 2006 book Think! Why Crucial Decisions Can’t Be Made in the Blink of an Eye, will deliver the morning session’s keynote address and take attendees to the heart of the critical thinking pillar.  LeGault is outraged by the downward spiral of American intellect and culture.  “If bestselling books are advising us to not think,” LeGault argues, “it comes as no surprise that sharp, incisive reasoning has become a lost art in the daily life of Americans.  Somewhere along the line, the Age of Reason morphed into the Age of Emotion; this systemic erosion is costing time, money, jobs, and lives in the twenty-first century, leading to less fulfillment and growing dysfunction.”  LeGault will provide a bold, controversial analysis of the causes of, and solutions for, the erosion of growth and market share at many established American companies.  LeGault is an award-winning National Post editor, writer, and a former columnist for the Washington Times

Business consultant Karen E. Purves will provide the final keynote address during the May 3 closing general session.  Purves will provide annual conference attendees a fresh perspective on problem solving methods, and a variety of tools to spark innovative thinking, while sustaining an innovative environment.  Known for her infectious energy and humor, Purves has conducted time-proven, content-driven seminars at a diverse list of organizations from Pfizer to Deloitte, and the United States Department of Agriculture to Motorola.  She brings a myriad of experiences to her speaking engagements, including testifying before a U.S. Congressional Subcommittee and performing improvisational comedy at “The Second City” Mainstage Theater in Chicago.

National Credit Union Administration (NCUA) Vice Chairman Rodney E. Hood will deliver the May 2 afternoon session keynote address, to illuminate the importance of collaborative and cooperative
footing for NACUSO’s National Center and the industry in general.  “The Vice Chairman was
incredibly well received at our fall Business Services Collaborative,” stated Vic Pantea, NACUSO
interim president and president/COO of Member Gateways, LLC in South Bend, Indiana.  “While he may further endorse the credit union and CUSO relationship at the annual conference, I fully anticipate that Rodney Hood will challenge all of us with his own special vision for the industry.” Delivering his keynote address to an enthusiastic membership at the second annual NACUSO 2006 Business Services Collaborative, held in Chicago this past November, Hood challenged credit unions to engage credit union-owned solutions saying, “CUSOs are the ones with the infrastructure, and because of what they’re doing, you can give them the synergies and efficiencies that they need to do business lending effectively.”

In addition, the 2007 Annual Conference will have a distinct group of industry leaders conducting
breakout sessions May 1 and 2.  “CUSOs are the ideal mechanism to do the heavy lifting for credit
unions, for the actual implementation of strategies derived from critical thinking, collaboration, and
innovation,” Pantea emphasized.  “Credit unions that utilize the National Center for Collaboration
and Innovation will look to NACUSO, and its CUSO members, for the final pillar – implementation –
and answers that lead to faster results.”

# # #

Download Adobe PDF

Credit Union Service Organization (CUSO) Investments in Non-CUSO Service Providers

December 16, 2005

Re: NCUA General Counsel Opinion number 05-1018 dated November 23, 2005 to Stephen A. J. Eisenberg, Re: Credit Union Service Organization (CUSO) Investments in Non-CUSO Service Providers.

There has been some confusion caused by the above referenced General Counsel Opinion Letter. The letter states that “a CUSO may only invest in a non-CUSO service provider if its investment is necessary to receive the non-CUSO’s services or a reduced price for goods and services.” This statement has led some in the credit union world to believe that investments in CUSOs with non-credit union co-owners are not permitted. This is not the case.

CUSOs must primarily serve credit unions or members of affiliated credit unions. This is the CUSO customer base requirement. If an entity does not meet the customer base requirement, the entity is not considered a CUSO and credit union investment is not permitted. However, a credit union may still be able to invest in the non-CUSO if at least one of two following conditions is met: (1) credit union ownership is required in order that credit union members have access to the service; or (2) credit union ownership is required in order that credit union members receive more favorable pricing. The example of the ATM network was cited.

After speaking to both the author of the letter and the person requesting the opinion, I learned that the title insurance agency in which the federal credit union was proposing to invest did not primarily serve credit unions or members of affiliated credit unions, thus it was a non-CUSO service provider. The agency’s services to the members were not conditioned upon the credit union having an ownership interest and the agency would not reduce the price of the services to credit union members if the credit union became an owner of the agency. Hence neither of the two conditions that could excuse compliance with the customer base requirement was met. NCUA had no choice but to deny the request by the credit union to invest in a non-CUSO service provider.

If the title insurance agency primarily served credit unions or members of affiliated credit unions, the proposed investment would have been a permissible CUSO investment. There are many CUSOs that are legally co-owed by entities other than credit unions, including CUSOs that provide title insurance services. As long as the CUSO regulations are met, there is no prohibition of a federal credit union investing in a CUSO with a non-credit union investor. I have confirmed this with NCUA and this is the case.

Comments on Proposed Rule Part 741.8

September 27, 2005

Ms. Mary Rupp, Secretary of the Board
National Credit Union Administration
1775 Duke Street
Alexandria, Virginia 22314

Re: Comments on Proposed Rule Part 741.8

Dear Ms. Rupp:

I am submitting the following comments on proposed revisions to Part 741.8 as General Counsel to NACUSO.

The question posed by NCUA is whether Part 712.3 and 712.4 should be applied to federally insured state chartered credit unions (FISCUs) so as to require FISCUs to follow the same CUSO structural, accounting, audits, NCUA access and corporate separateness as required for federally chartered credit unions (FCUs).

My experience in helping FISCUs form CUSOs for twenty years is that they already substantially follow the concepts in Part 712.3 and 712.4. It is good practice and the state credit union regulators expect credit unions to act prudently. While more states are writing specific CUSO regulations, many adopt the NCUA principals explicitly or as a guide in interpreting less specific CUSO regulations.

We question the necessity to compel the application of Parts 712.3 and 712.4 to FISCUs. Have there been actual losses to FISCUs caused by CUSOs or is the NCUA speculating on possible problems? We are not aware that the state credit union regulators were failing in their duty to supervise the permitted structure and corporate separateness of CUSOs. Why does NCUA feel compelled to preempt the ability of state credit union regulators from regulating their credit unions’ CUSO activity?

The power of the dual chartering system permits more opportunity for innovation. Some innovation will be successful and some will not but the ability to have multiple opportunities to innovate makes all credit unions stronger. The member business loan regulation innovations made by some states exemplify the advantages of the dual chartering system.

In comparing some state CUSO regulations with Part 712, some state credit union regulations permit greater investment powers, some permit lesser or no lending powers, some permit activities not within the permitted activities of Part 712.5, some require CUSOs to serve only members, and some permit more services to nonmembers due to different statutory authority.

The powers of state chartered credit unions often differ from federally chartered credit unions, yet there is no push to homogenize state and federal credit unions to look and act the same. By starting down the path of homogenizing CUSOs, we run the risk of stripping the ability of CUSOs to innovate under different regulatory schemes at a time when the credit union industry sorely needs innovation to compete in the financial marketplace.

We strongly urges the NCUA not to take any action at this time that would preempt the state credit union regulators from establishing rules the state credit union regulators deem appropriate for their state chartered credit unions. Allow them the opportunity to innovate. If there is historical evidence of a threat to the safety and soundness to the share insurance fund due to lack of sufficient state credit union regulator oversight, then action may be justified. In the absence of a demonstrated and immediate threat to the share insurance fund, we urge you to delay additional regulation and monitor the safety and soundness of CUSOs formed by FISCUs. We believe that the state credit union regulators will continue to provide the necessary oversight.

Very truly yours,
Guy A. Messick

Regulatory Alert: Comments to Proposed Interpretive Ruling and Policy Statement No. 05-1: Sales of Nondeposit Investments

Subject: Comments to Proposed Interpretive Ruling and Policy Statement No. 05-1: Sales of Nondeposit Investments
Comment Due Date: July 25, 2005
Suggested Action: Send written comments to NCUA and NACUSO

As NACUSO’s liaison with NCUA, Guy Messick had a meeting with NCUA legal staff on July 6 which included a discussion about the proposed IRPS. It seems that they may be inclined to keep the requirement in the IRPS that credit unions engage in oversight of the broker/dealer’s compliance. View the comment letter dated June 30 filed by Guy.

Background

This is a proposed IRPS issued by NCUA that will replace Letter to Credit Unions Number 150. The IRPS can be divided into three topic areas. The preliminary position of NACUSO on these topics can be summarized as follows:

  1. IRPS: Establishes required investment disclosures and separation of investment services from depository services.

    NACUSO’s Preliminary Position: There have been no substantive changes from Letter Number 150 and some flexibility has been built in to use the shortened disclosures permitted by NASD Rules. There may be some details to be criticized but NACUSO does not see substantive disagreements with this portion of the IRPS.

  2. IRPS: Requires the credit union to oversee the broker/dealer’s securities sales compliance.

    NACUSO’s Preliminary Position: This is a serious problem. Requiring credit unions to oversee the securities sales compliance (a) imposes a duty that credit unions are not able to do without hiring expensive registered experts to perform the duties, (b) imposes costs that will render the investment services less competitive, (c) imposes an unnecessary duplication of supervision and compliance that already exists in the securities business, and (d) is not possible to do under some state privacy laws.

  3. IRPS: Limits nonmember investment income and expenses to 5%.

    NACUSO’s Preliminary Position: This is the wrong way to deal with the nonmember issue. An imposition of an arbitrary percentage is very difficult to apply. When is the percentage measured? Is it by sales volume or by customer? What happens if a new registered representative starts work and has 100% nonmember business until he or she has time to build his or her credit union business? A better solution is to track nonmember business and make sure that there is a means to insure that only costs are being recovered for the nonmember business. The nonmember services are being done by the broker/dealer and not the credit union. If the credit union is only a conduit for expenses, there is no incentive to grow the nonmember business. The credit union is simply being permitted to deal with a necessary by-product of being in the investment services business without incurring a loss.

Member Action

NACUSO needs your help. We need all of our members to respond to this proposed IRPS. NCUA needs your input, especially from those who have experience with providing investment services. Please send copies of your comments to NACUSO’s General Counsel, Guy Messick

by fax at 610-891-9008.

View the proposed IRPS at the NCUA web site.

Advocacy Updates

Report on Advocacy Fund spending… NACUSO Working for You

Through the support of our members and partners, NACUSO raised approximately $273,000 in contributions toward its Advocacy Fund (and predecessor Legal & Litigation Fund) over the past 3 years.  The goal of the two funds together are to enable NACUSO to conduct crucial advocacy work on behalf of CUSOs and their credit union owners / partners.

In keeping with our commitment to be fully transparent and to regularly communicate our usage of these dollars (we provided detail of how the funds were spent from 2014-2015 last year, which is also included in the attached Report), we would like to provide you with the following information, which was provided in detail to each contributor in the first quarter of 2017.  NACUSO spent the following amounts from the Advocacy funds during 2016:

$24,000     Dollar Associates, LLC - paid for advocacy work with Congress and NCUA on CUSO issues
$24,000     Messick & Lauer, P.C. - paid for advocacy work with NCUA and meetings with Congress on CUSO issues
$   718     Travel to Washington DC for meetings with Congress and NCUA
$48,718    Total amount spent influencing Congress and NCUA for favorable CUSO environment

The remaining funds, out of the total $273,000 in combined contributions, equal $110,323.  This represents the balance in Restricted Cash as of 12-31-16, as per the NACUSO Advocacy and Legal Fund Analysis report (click link below).

The NACUSO Board and its Legislative & Regulatory Advocacy Committee is continuing to prioritize the advocacy of a regulatory environment that is pro-CUSO and pro-collaboration within our industry.  NACUSO needs your support for this initiative and to accomplish its purposes.  While strategies may change over time based upon circumstances and opportunities to advance the cause of CUSOs, the necessity for funding of such initiatives is essential if NACUSO is going to remain in a position to impact the decision-making process for CUSOs and the credit unions that invest in, or utilize them.

Click to Contribute

For a summary of how NACUSO has worked to maintain an environment that is supportive of collaborative investment, the following report entitled NACUSO Working For You (see below) provides a summary of the work we have done on your behalf.  To capsulize some of its key points, a summary of what we feel are the NACUSO “wins” this past year are:

  • Effectively opposing the costly extension of Vendor Authority to NCUA.
  • Worked with NCUA on the revised MBL Rule.
  • Advocating for the expansion of CUSO powers to originate loans credit unions are authorized to make, to help bring scale and expertise benefits to credit unions in all loan categories.
  • Encouraged NCUA to be transparent in its budget and rule making including the OTR calculation.
  • Working with NCUA to minimize adverse impact of the CUSO Registry and to correct the acknowledgements initially in the Registry.

To emphasize the last bullet above, initially, in its first version of the CUSO Registry documentation that CUSOs were required to submit with their data to NCUA in 2016, the agency’s acknowledgement form required CUSOs – when submitting their data – to accept responsibility under regulations that only apply to credit unions but were not intended to, apply to CUSOs.  These acknowledgments, if left unchallenged and signed by CUSO officials, could have exposed CUSOs to potential penalties under regulations that do not, and were never intended to apply to CUSOs.  Upon becoming aware of this inappropriate acknowledgement requirement, NACUSO worked directly with senior NCUA staff to bring our concerns to their attention.  NCUA agreed to the NACUSO position and made the needed changes to the acknowledgements for the CUSO Registry data submission process.  In addition, for those CUSOs who had already submitted their registration and signed the acknowledgements, NACUSO developed a letter with the appropriate wording for those CUSOs to send to NCUA to clarify this acknowledgement concern. (more…)

NCUA Meeting Provides CUSO Guidance 6/16/16

NACUSO Visits NCUA to Discuss the CUSO Registry and CUSO Reviews

On June 14, Jack Antonini, NACUSO President and Guy Messick, NACUSO General Counsel met with NCUA Staff on the results of the CUSO Registry and the thinking on how CUSO Reviews will be handled.

The CUSO Registry sign-up period and the follow-up by NCUA found there were approximately 900 CUSOs.   NCUA believes that there are more CUSOs that have not reported.  Under the NCUA Regulations (Part 712.1(d)), “A CUSO also includes an entity in which a CUSO has an ownership interest of any amount, if that entity is engaged primarily in providing products or services to credit unions or credit union members.”   So these subsidiary CUSOs are considered CUSOs and required to make annual reports to NCUA.   The NCUA staff believes that many CUSOs were not fully aware of this requirement and there are a number of subsidiary CUSOs that have not reported.   NCUA will be following up with CUSOs to obtain these filings.   NCUA is also scrubbing the data and asking for clarification if the data is indicating that there may have been a reporting error. (more…)

Report on Advocacy Fund spending…NACUSO Working for you

Through the support of our partners, NACUSO raised approximately $63,000 in contributions toward its Legal and Litigation Fund in 2014 with a primary purpose to develop strategies for the most effective way to seek the repeal and/or mitigation of the impact of the CUSO Rule that NCUA had adopted in November 2013.  Subsequently, NACUSO established an Advocacy Fund to supplement the Legal and Litigation Fund.  The goal of the two funds together were to enable NACUSO to coordinate legal decision making, with a crucial advocacy component that will have more impact than the always risky option of legal action.  In total, $190,600 was contributed to the NACUSO Advocacy Fund.  Combined these two related initiatives received total contributions from NACUSO partners of approximately $253,600 in 2014 and 2015.

In keeping with our commitment to be fully transparent and to regularly communicate our usage of these dollars, we would like to provide you with the following information.  NACUSO spent the following amounts from the two funds during 2014 and 2015:

(more…)

CUSO Registry Clean Up Period 4/22/16

As most of you know, all CUSOs are obligated under the NCUA Regulations to register certain information directly with NCUA on an annual basis.   Over 800 CUSOs did so in February and March.   NCUA is now in the process of making sure all CUSOs have registered.   Their new deadline is April 30.  They are taking CUSO information from the credit union 5300 call reports and sending out letters reminding “CUSOs” that they have to register.   Some credit unions may have incorrectly listed a company as a CUSO.  Other credit unions list their CUSO but use an acronym for the CUSO instead of the CUSO’s full name.   NCUA, not knowing better is sending letters to any and all companies listed on the call reports. (more…)

Regulatory Update 3/15/16

Letter to NCUA regarding CUSO Registry Acknowledgement: Yesterday, NACUSO informed you of a change we negotiated with our General Counsel (Messick & Lauer) with the NCUA regarding the CUSO Registry Acknowledgment each CUSO is required to agree to when submitting their CUSO registration in the NCUA’s CUSO Registry system.  As we pointed out in our Regulatory Alert yesterday, the acknowledgment required CUSOs to agree to be bound by statutes that only apply to credit unions and which imposed penalties that are not applicable to CUSOs.

(more…)

Change to the CUSO Registry Acknowledgement 3/14/16

During the process of assisting with CUSO Registry questions, it came to our attention that in order to complete the CUSO Registry, CUSOs were required to agree to be bound by statutes that apply to credit unions and which imposed penalties that are not applicable to a CUSO.  On behalf of NACUSO and the many CUSOs in this industry, Messick & Lauer (NACUSO’s General Counsel) have advocated and negotiated to revise this acknowledgement to more accurately describe the duty of CUSOs to respond to the CUSO Registry.  It is a contractual duty with the credit union and not a direct regulatory obligation to NCUA.   As NCUA continues to pay more attention to CUSOs, NACUSO will continue to take action to be the voice of CUSOs and to resist any attempts at regulatory overreach.  The NCUA has changed the acknowledgement text.  For your reference, the text of the previous and current CUSO Registry acknowledgments are below. (more…)

Regulatory Update 2/26/16

NCUA’s CUSO Registry Training & Demonstration webinar held on February 11 is now available to be viewed.  If you missed the webinar, or want to view it again, to help you in completing the CUSO Registry, you can watch it by clicking on the following link:  View 2/11/16 Webinar. You have until March 31, 2016 to complete your initial registration of all CUSOs.