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NACUSO Establishes Advocacy Fund in Response to Regulatory Climate
Monday, November 10, 2014 6:40 AM

Recent developments in the regulatory climate around credit union service organizations (CUSOs) have led the National Association of Credit Union Service Organizations (NACUSO) to take steps to respond. The organization announced this week that it will establish an advocacy fund, and that it is examining the possibility of a lawsuit against the National Credit Union Administration.

In their Nov. 4 press release, NACUSO President and CEO Jack Antonini, on behalf of the NACUSO board, said the fund will "supplement its efforts to promote and protect a collaboration/CUSO-friendly regulatory climate."

Other concerns of NACUSO include:

  • A dramatic increase in CUSO examinations which have the same scope and tone as credit union examinations;
  • The treatment of CUSOs as a systemic risk to the National Credit Union Share Insurance Fund even though only 22 basis points of credit union investments have been made in the 30-year-old CUSO segment of the industry;
  • State credit union regulators increasing their authority over CUSOs owned by state-chartered credit unions;
  • NCUA proposing a risk-rated capital rule which weighs CUSO investments at a punitive 250 percent; and
  • NCUA lobbying Congress to provide it with direct regulatory authority over CUSO and third-party service providers.

Antonini said in his statement, "In order to raise sufficient funding for the Advocacy Fund, we have provided suggested levels of contributions, but we want all our members to contribute at levels they can afford in order to maximize the percentage of CUSOs and their credit union owners NACUSO represents when negotiating with NCUA. Non-members are encouraged to contribute as well."

"All of the organizations associated with the NACUSO Board of Directors have already made contributions or made commitments to contribute," Antonini said. "We urge you to add your collaborative voice to NACUSO’s advocacy efforts."

On NACUSO's webpage, you can find an FAQ segment with answers about the reasoning for CUSO-focused advocacy fund and how it is intended to be utilized on behalf of CUSOs and their credit union owners.