WASHINGTON--Outlining a need for significant changes in the NCUA’s succession planning final rule, America’s Credit Unions sent a letter to NCUA urging the agency to rescind the rule and repropose a revised version.
ACU sent the letter in response to the agency’s request for comments on the succession planning and simplification of share insurance final rules.
Consistent with America’s Credit Unions‘ previous advocacy on this topic, Regulatory Advocacy Senior Counsel Luke Martone explained that the focus of the succession planning rule should shift from a mandatory requirement to a guidance-based approach that offers practical support to credit unions.
“This approach would ensure credit unions receive valuable information from the NCUA without imposing overly rigid compliance requirements,” wrote Martone.
Of note, NCUA Board Chairman Kyle Hauptman voted against the proposed succession planning rule in July 2024 and continued to raise concerns about the efficacy of the rule and its burden on small credit unions when he voted in favor of the final rule in December 2024.
ACU's letter also addressed the share insurance simplification rule, offering support while asking the agency to provide comprehensive transition guidance and extend the compliance timeframe as credit unions work to inform members and comply with the changes.