Thursday, March 20, 2008

NCUA report wants data on membership, compensation

ALEXANDRIA, Va. (2/27/08)--Credit unions would be required to collect and report membership profile data under recommendations released yesterday by the National Credit Union Administration's (NCUA) Outreach Task Force. The group also recommended increased disclosure of senior management compensation at federal and corporate credit unions.

The proposals were among the 12 allocated to four areas:
Membership profile and financial services;
Senior executive officer compensation;
Low-income definition; and
NCUA outreach.

NCUA Board Member Gigi Hyland chairs the task force, which was created in November 2006 to review recommendations from the Member Service Assessment Pilot Program (MSAP) on credit unions' mission. NCUA staff members comprise the task force.

During 2007, the task force conducted six town meetings across the United States to collect credit union input.

The 85-page report concludes that membership profile information should be collected via NCUA's Automated Integrated Regulatory Examination Software (AIRES) and reported aggregately. Federal credit unions could access their own reports, said the task force.

The group also concluded that financial services data should be collected through the 5300 Call Report and should be published aggregately. The task force did not advocate that the agency monitor members' use of any services.

The task force also highlighted federal credit union executive management compensation. It pointed out that increased transparency of executive compensation would improve "accountability and be more consistent with the prevailing public policy."

The NCUA report did not recommend that individual senior executive compensation information should be provided to the public, although it did recommend that individual compensation information be disclosed to members annually.

The task force also recommended that NCUA broaden its efforts to include all federally insured credit unions and to encourage greater involvement by the regional agency offices in implementing outreach policies.

For any of the recommendations to be adopted, the NCUA board must first consider public comments before it takes action. The board indicated no timeline to begin the process, according to Credit Union National Association (CUNA) Deputy General Counsel Mary Dunn, who was briefed by the agency early Tuesday.

CUNA President/CEO Dan Mica expressed concern about any new regulatory burdens being imposed on credit unions, "given that credit unions are the most regulated of all financial institutions."

"Our Governmental Affairs Committee is meeting in town at week's end, and the Outreach Task Force report will be a major point of consideration," said Mica. "In fact, Board Member Hyland will be on hand to discuss the report's recommendations with our group. Further, as our Governmental Affairs Conference gets underway next week, we are certain that the task force's report will be discussed widely among the delegates."

"Over the course of the GAC, and likely for the next several months, we look forward to the discussion--and debate--over the report, and the merits of the recommendations," said the CUNA leader.

NCUA also will share the report's findings with key offices on Capitol Hill, according to Dunn.
Use the resource links below for a complete CUNA summary of the report and additional details from NCUA.

courtesy of

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