ALEXANDRIA, Va. –NCUA said it is now accepting comments on a joint rulemaking related to incentive-based compensation that was approved by the NCUA Board at its July meeting.
This proposed rule addresses incentive-based compensation arrangements, as required under section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 956 requires federal financial institutions regulators, including the NCUA, to issue joint regulations or guidelines requiring disclosure and reporting of compensation at financial institutions with more than $1 billion in assets, the agency said.
As CUToday.info reported, the rule is a re-proposal of an earlier rule proposed by regulators in 2016.
The Tiers
The proposed rule creates a tiered system by dividing financial institutions covered under the rule into three categories, each with separate requirements:
- Level 1: institutions with assets of $250 billion and above
- Level 2: institutions with assets of at least $50 billion and below $250 billion
- Level 3: institutions with assets of at least $1 billion and below $50 billion.
Other Agencies Adopting Rule
The rule was adopted by the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, and the Office of the Comptroller of the Currency on May 6.
The Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission have not approved the joint rulemaking yet.
Waiting on Fed, SEC
NCUA said that once the notice of proposed rulemaking is adopted by all six agencies, it will be published in the Federal Register with a comment period of 60 days following publication. However, some Washington analysts have suggested it is very unlikely the Fed will approve the rulemaking.
Until then, each agency acting on the proposed rule will make it available on their respective websites and accept comments, NCUA said.
For info and to submit a comment: Regulations.gov.