On Oct. 22, the National Credit Union Administration published a rule amending its fidelity bond regulations (Parts 704 for corporate credit unions and 713 for natural person credit unions). In addition to this checklist (free download with registration), here are four things to consider for complying with the new rule.
The responsibility for compliance with the first two items falls to credit unions.
1. Strengthen Board of Directors’ Oversight
The new rule increases the board’s oversight responsibility for fidelity bond coverage. It requires the board of directors to annually review the CU’s fidelity and other insurance coverage. This will help ensure that coverage is adequate in relation to the potential risks facing the credit union and the minimum requirements set by NCUA.
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