On Compliance: NCUA fidelity bond rule changes
A few points to help insure you comply (pun intended).
As we all know in credit union land, the Great Recession marked big changes in the National Credit Union Administration’s perspective on the responsibilities of credit union directors for the oversight and management of their credit unions.
In late 2010, NCUA revised its Rules and Regulations Section 701.4 to clarify directors’ fiduciary duties and to mandate directors’ acquisition of financial skills necessary to meet those duties. In early 2011, then-NCUA Chairman Debbie Matz issued NCUA Letter to Federal Credit Unions 11-FCU-02, further emphasizing the expectations and obligations of credit union directors.
The overarching message of enhanced director responsibilities has been heard by many credit unions during their regulatory exams in the past decade. Consistent with this theme, NCUA has amended Rules and Regulations Part 713 to expand your board’s responsibilities related to the review, approval and purchase of your credit union’s fidelity bond.
To help ensure your credit union’s compliance with the Part 713 revisions, please take note of the following:
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