Comment period open on fair hiring in banking proposed rule
ALEXANDRIA, VA (November 7, 2023) — The NCUA invites public comment on a Fair Hiring in Banking proposed rule. For more information or to submit a comment, please visit Regulations.gov.
The NCUA Board, at its Oct. 19 meeting, unanimously approved the proposed rule that would incorporate the NCUA’s Second Chance Interpretive Ruling and Policy Statement (IRPS 19-1) and statutory prohibitions imposed by Section 205(d) of the Federal Credit Union Act into the agency’s regulations. This proposed rule would allow people convicted of certain minor offenses to work in the credit union industry without applying for the Board’s approval.
The proposed rule would address, among other topics, the individuals and types of offenses covered by Section 205(d) and the NCUA’s procedures for reviewing a consent application. Additionally, the proposed rule would amend the following:
- NCUA’s policies and procedures governing an application to rescind a prohibition pursuant to Section 205(d), as currently reflected in the Second Chance policy statement and consistent with both amendments made by the recent Fair Hiring in Banking Act and with comparable Federal Deposit Insurance Corporation regulations.
- Regulation governing the conditions under which newly chartered or troubled federally insured credit unions must notify the NCUA of any proposed changes to the credit union’s board of directors, committee members, or senior executive staff and make other conforming changes.
The proposal was published in the Federal Register on Nov. 7, 2023, and has a 60-day comment period, ending Jan. 8, 2024.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.