FSOC report offers support for NAFCU-sought reforms

In its annual report released last week, the Financial Stability Oversight Council (FSOC) made several NAFCU-supported recommendations to ensure the U.S. financial system is prepared to handle risks and consumers are protected. However, it also suggested that the NCUA have third-party vendor oversight authority, to which NAFCU is opposed.

Some of the recommendations in the report include:

• Cybersecurity: FSOC encouraged regulators to work with other government agencies and private entities “to enhance financial sector capabilities to mitigate vulnerabilities and maintain a strong cybersecurity posture.” NAFCU has been a leader in calling for strong national data security standards; the association was the first group after the massive 2013 Target data breach to call for a legislative solution to reform the nation’s data security system. In addition, FSOC recommended giving NCUA third-party vendor authority due to risks associated with firms providing data services. NAFCU supports strong cybersecurity protections, but has opposed granting NCUA such authority, arguing that granting such authority is unnecessary, costly and would not necessarily result in better supervision of credit unions.

 

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