Comments on NCUA’s proposed succession planning rule due Sept. 23
ALEXANDRIA, VA (July 29, 2024) — The NCUA is 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. For more information and to submit a comment, please go to Regulations.gov.
The NCUA 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. 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. Additionally, each board of directors 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.
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. 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 more information, please go to Regulations.gov.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
