Credit union trades ask NCUA to abandon succession rule

The National Credit Union Administration (NCUA) should not micromanage federal credit unions by issuing a proscriptive rule requiring them to have succession plans, credit union trade groups told the agency in comments on a proposed rule issued by the NCUA.

Among the most prominent voices making themselves heard were members of both the Credit Union National Association (CUNA) and the National Association of Federally-Insured Credit Unions (NAFCU).

“We support the component parts of the proposed rule, as we believe they would result in a comprehensive succession plan,” Luke Martone, senior director of advocacy and counsel at CUNA, told the agency. “However, we believe the language included in the proposal would be more appropriate as guidance than regulation.”

NAFCU agreed. “While NAFCU does not doubt that succession planning is helpful for credit unions, a rulemaking is not,” Aminah Moore, the association’s regulatory affairs counsel, wrote in her comments. “Instead, NAFCU suggests that the NCUA add resources that will assist smaller credit unions in developing succession planning.”

 

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