Q. What’s the biggest regulatory change credit unions should expect in 2010?
A. Although there are many important issues to address with regard to compliance, the most pressing at this time for us to address with our credit unions, are those that come from the Credit Card Accountability, Responsibility and Disclosure (CARD) Act. The Act is an important consumer protection tool and we support its intent. Unfortunately, credit unions are struggling with the cost and technical issues surrounding data processing changes needed in order to comply. Credit unions serve individuals within their fields of membership who choose to become members and because of this membership relationship, most credit unions provide monthly consolidated membership statements that combine information on a member’s savings, checking, loan accounts and many open-ended credit plans, other than credit cards, with different due dates.
Q. Will there be more regulatory changes in 2010 than there have been in years past?
A. Absolutely. The most prominent potential regulatory changes for 2010 at this time is the proposed Consumer Financial Protection Agency (CFPA) that Congress is now reviewing. At this time, the language of the proposal takes many important consumer protection steps that we are avidly supporting. Although, until the bill is ultimate passed and signed into law, we remain concerned about duplicative oversight of credit unions by two federal agencies creating a regulatory burden and additional fees or assessments for financial institutions.
Q. What is the Credit Union League of Connecticut’s new Compliance School for 2010?
A. The League’s Compliance School is a unique and comprehensive program that will run from February thru July, and take place two consecutive days in each of those months. There are six widely recognized compliance, economic, and asset liability management professionals that will conduct the workshops. Because the “Small Credit Union Support Program” is subsidizing the costs, credit unions with less than $20 million in assets may attend free of charge. Credit unions with more than $20 million in assets may attend for a nominal charge. Participants who attend every session in the program will receive a certificate of completion.
Q. What’s the best way for credit unions to prepare for these changes?
A. We here at the League recognize the importance of our credit union’s having the ability to not only comply with current regulation, but also prepare for impending regulation. The aforementioned compliance school, our upcoming Compliance/Regulatory Forum (Nov. 17, 2009), regular/ongoing regulatory training & support, access to a full-time Regulatory Compliance Answer Person, and the ability to engage compliance professionals through our joint venture with M&M Consulting (The Connecticut Compliance Solution), are all tools that we provide to affiliated credit unions in order for them to prepare and manage a comprehensive compliance program. We recognize that that the compliance burden will only become more onerous in the future, which is why we constantly strive to provide solutions for credit unions in Connecticut.
