NAFCU statement in response to FSOC report reiterates position against vendor exam authority for NCUA
WASHINGTON, DC (May 19, 2015) — National Association of Federal Credit Unions (NAFCU) Senior Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement in response to the inclusion in the Financial Stability Oversight Council’s annual report to Congress that NCUA be provided direct examination authority over credit unions’ third-party vendors.
“Given that the Financial Stability Oversight Council is a regulatory body, the suggestion of this added layer of regulation is not surprising,” said Hunt. “We continue to view third-party vendor examination authority for NCUA as a costly proposition and unnecessary for credit union industry safety and soundness, and we will continue to weigh in with lawmakers to urge against it. While NAFCU acknowledges the importance of cybersecurity and risk management, we firmly believe that cybersecurity and third-party vendor examination authority do not go hand in hand.”
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.