ALEXANDRIA, Va.– NCUA said it is now accepting comments on a proposed rule related to succession planning at federally insured credit unions that was approved by the NCUA board at its July meeting.
As CUToday.info reported, the board approved a proposed rule that requires boards of directors at federally insured credit unions to establish and adhere to processes for succession planning. “This new proposed rule modifies the 2022 proposal based on the public comments received and upon further consideration of the issues,” the agency said. “Under the revised proposal, boards of directors at federally insured credit unions would be required to establish written succession plans that address specified executive and other positions.”
In addition, each CU board would be required to review the succession plan in accordance with a schedule it establishes, but no less than annually. The plan would be required to address the credit union’s strategy for recruiting candidates to assume each of the key positions and promote the credit union’s safe and sound operation.
Template Available
“The NCUA board encourages all credit unions, regardless of asset size, to have a succession plan to fill key positions and ensure continuity of their operations,” the agency said. “These succession plans should be consistent with the size and complexity of the credit union. The proposed rule includes a suggested succession plan template that may be appropriate for smaller credit unions.”
Comments on the proposed rule must be received no later than Sept. 23. For info: Regulations.gov.