ALEXANDRIA, Va.—Calling the proposal “unnecessary,” states leagues and America’s Credit Unions shared concerns with the NCUA about a joint proposed rule to implement section 956 of the Dodd-Frank Act.
The proposal would add additional regulations on incentive-based compensation arrangements and require covered financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate Federal regulator.
The letter from America’s Credit Unions and the state leagues notes the joint proposed rule is unnecessary for credit unions due to the absence of “risky” incentive-based compensation arrangements at credit unions and the more flexible approach that guidance would provide.
The letter argues that:
- The existing regulatory framework is sufficient
- The proposed risk profiles do not account for credit unions’ unique nature
- The rule includes broad and burdensome requirements
- A credit union service organization exemption is appropriate
- Regulators should issue flexible guidance rather than rigid rules