Episodios

  • Proposed NCUA on Rule Incentive Based Compensation Arrangements

    Proposed NCUA on Rule Incentive Based Compensation Arrangements
    Jul 23 2024

    Proposed Rule on Incentive-Based Compensation Arrangements


    In this episode, Samantha Shares discusses the NCUA’s new proposed rule on Incentive-Based Compensation Arrangements, voted on during the July 18th Board Meeting. The episode includes a detailed presentation by various board members and staff on the scope, requirements, and implications of the proposed rule, as well as a debate among the board members regarding its enactment.
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    33 m
  • Proposed Succession Planning Rule: July NCUA Board Meeting

    Proposed Succession Planning Rule: July NCUA Board Meeting
    Jul 21 2024

    Proposed Succession Planning Rule: July NCUA Board Meeting


    This episode covers NCUA’s new proposed rule on Succession Planning discussed at the July 18th Board Meeting. The rule aims to improve the preparation and transition processes within credit unions by mandating formal written succession plans. The conversation includes insights from key staff and board members, and notes the rationale behind the proposal, as well as the expected benefits and concerns raised.
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    31 m
  • Letters of Understanding and Agreement (LUAs)

    Letters of Understanding and Agreement (LUAs)
    Jul 16 2024
    Hello, this is Samantha Shares. This episode covers N C U A’s Enforcement Manual on Letters of Understanding and agreement – also known as L U A’s. The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the Enforcement manual on L U A’s. What is a Letter of Understanding and Agreement?An L U A is a bilateral document signed by the credit union's board of directors and the regional director (RD). The credit union agrees to take, or not take, a certain specified action(s). RDs often issue L U As when credit unions have not adequately responded to less severe measures, such as Documents of Resolution. N C U A also requires L U As for newly chartered credit unions and for the granting of permanent special assistance. Delegation of Authority SUP 16 authorizes RDs to enter into L U As with elected and appointed officials of FCUs and FISCUs. RDs discuss and negotiate publication with credit unions to prevent unfair surprises to credit unions and their officials. TheRDs will address the issue of publication in every L U A between N C U A and a credit union by including one of the following three provisions:2 1. This L U A will not be published.2. This L U A will be published.3. The RD is reserving for a reasonable time his/her right to publish this L U A.3• | | | 2 Minor modifications and variations of the listed provisions that clearly communicate the same ideas are acceptable.3 This third provision can also specify the period of time within which the RD will decide whether to publish the L U A or can correlate publication to a specified event (or the failure of an event to occur).a. Required Letter of Understanding and Agreement provisionsThis section is redacted. | | | b. Published Letter of Understanding and Agreement The FCU Act §206(s)(1)(A), 12 U.S.C. §1786(s)(1)(A), requires the N C U A Board to publish and make available to the public "any written agreement or other written statement for which a violation may be enforced by the Board unless the Board, in its discretion, determines that publication would be contrary to the public interest." L U As must be published if violations are to be considered enforceable. The N C U A Board may take administrative actions against credit unions or officials when they fail to meet terms of published L U As. Violations of the terms of a published L U A alone are grounds for administrative action and, although not required, the L U A should include language to that effect as stated above. N C U A may enforce a published L U A by bringing an enforcement action, such as a cease and desist order or civil money penalty, and proving noncompliance with the published L U A.These publication requirements apply to all L U As, including those issued to newly chartered credit unions, as well as those issued in connection with special assistance. N C U A may take an enforcement action, even if the L U A is not published, if the credit union fails to comply with the terms of the L U A and the credit union's conduct constitutes a material safety and soundness violation or violation of law or regulation. While not required by the delegation, the regions should provide the Office of General Counsel and E&I with a draft of an L U A considered for publication two business days prior to its delivery to the officials of the credit union for signature. c. Non-Published Letters of Understanding and Agreement Non-published L U As are not enforceable. The mere violation of a non-published L U A is not grounds for a formal enforcement action, but may serve as the basis for developing grounds for a formal enforcement action if underlying safety and soundness concerns or violations of statutes or regulations exist. The FCU Act provides that N C U A may enforce the terms of an unpublished L U A if the N C U A Board approves non-publication based upon a finding that publication would be contrary to the public interest. If the RD recommends to the N C U A Board that an L U A not be published because publication would be contrary to the public interest, and the N C U A Board issues this determination, the L U A will still be enforceable. The RD's recommendation must clearly show why publication would be contrary to the public interest. The FCU Act requires a quarterly written report to Congress to summarize all non-published L U ...
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    6 m
  • NCUA's Enforcement Options and Philosophy

    NCUA's Enforcement Options and Philosophy
    Jul 9 2024
    Hello, this is Samantha Shares. This episode covers N C U A’s Enforcement Action Philosophy per its redacted Enforcement Manual. The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the N C U A’s enforcement philosophy and enforcement alternatives. What is the agency's philosophy on enforcement actions?N C U A must deal with a credit union's problems before they become fatal. Success requires appropriate action and timing. It also requires clear communications between N C U A and the credit union's senior management and board of directors. Enforcement actions focus special attention on the problems or weaknesses and prompts corrections by credit union officials and management. Once N C U A staff identifies and communicates problems or weaknesses to the credit union, senior management and the board of directors are to correct them promptly. The examination report is the first step in determining if an enforcement action is necessary. The actions a credit union takes or agrees to take in response to the examination report will help determine whether to take enforcement action and if so, what type.Enforcement actions may be taken as a result of findings in an examination report or other supervision contact. Field staff need not wait for the completion of the formal examination or follow-up examination report to initiate these actions. This manual provides guidance in selecting the action or combination of actions best suited to accomplish corrective or remedial measures. The manual also promotes consistency while preserving flexibility for specific circumstances. N C U A's long-term supervision strategy takes into consideration not only the measures needed to address the credit union's problems currently but also what measures will be needed in the future if the credit union's problems develop into serious supervisory issues threatening viability. Certain types of enforcement action may also provide better transitions to more severe supervisory responses later if the condition of the credit union warrants. This manual provides guidance on the long-term strategy aspects of documentation for enforcement actions. The documentation of earlier enforcement actions, of failure to comply, and of the consequences for the credit union of that failure is an important part of establishing the record for more severe subsequent action. 1. What enforcement actions are available?Enforcement actions fall into two broad categories: informal and formal. a. Informal enforcement actions Use Informal enforcement actions when a credit union's overall condition is sound, but written commitments from the board of directors is needed to ensure that it will correct problems and weaknesses identified by N C U A staff. These enforcement actions provide a credit union with more explicit guidance and direction than is normally contained in an examination report. Agreement to an informal action is evidence of the board's commitment to correct problems before they hurt the credit union's performance or cause further decline in its financial condition. Regional directors (RD) are delegated the authority to issue informal enforcement actions. Informal enforcement actions are: ► Regional director letters.► Non-published letter of understanding and agreement.► Establishment of special reserves► Preliminary warning letters. | | | b. Formal enforcement actions The N C U A may use a wide variety of formal enforcement actions to support its supervisory objectives. Unlike most informal actions, formal enforcement actions are authorized by statute (mandated in some cases), are generally more severe, and are disclosed to the public. Also, formal actions are enforceable through other formal enforcement actions, such as the assessment of civil money penalties, andmay require litigation before an administrative law judge or a federal district court. Formal actions against a credit union are:► Published letters of understanding and agreement.► Cease and desist orders.► Civil money penalties.► Prompt Corrective Action (PCA) directives.► Termination of insurance.► Conservatorship.► Liquidation. 2. How do I determine the appropriate type of enforcement actions to use?Tailor the enforcement action to the institution. Design an action to correct ...
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    7 m
  • NCUA's Authority to Remove Officials

    NCUA's Authority to Remove Officials
    Jul 2 2024



    Hello, this is Samantha Shares. This episode covers N C U A’s Enforcement Manual Section on Removal of Officials.

    The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A.

    And now the N.C.U.A. enforcement manual on removal of officials.



    What is an NCUA “ removal” action?


    A removal action is the administrative action to remove directors, officers, or committee members. This action is available as an initial course of action or as a continuation of a cease and desist order if the officials refuse to comply as directed. Whether this enforcement action is an initial course or a continuation of a cease and desist order, it is separate and has its own applicability to particular situations. Section 206(g) of the FCU Act, 12 U.S.C. section1786(g), contains NCUA's authority to issue a removal order; NCUA Rules and Regulations section747, Subpart A, contains the rules and regulations governing removal administrative hearings.


    It may become necessary to initiate formal removal action where a breach of fiduciary duty occurs on the part of the director, officer, or committee member and where the credit union's board will not or cannot discharge the responsible person and where that person does not voluntarily resign.


    Removal of a director, an officer, or a committee member is not anticipatory in nature as in a cease and desist action. Removal is appropriate only when an official committed an act that constitutes grounds for removal, i.e., it cannot be imposed for future or threatened conduct. Removal can follow only if NCUA has issued a Notice of Intent to Remove or a Notice of Suspension and Intent to Remove and after completion of the appropriate administrative proceedings as provided in the FCU Act and NCUA Rules and Regulations.


    NCUA may remove a person even if they voluntarily resign or are terminated by the credit union. A removal action may be brought any time up to six years after resignation, termination of employment, liquidation, or any other termination of a relationship with the credit union (see section206(k)(3) of the FCU Act, 12 U.S.C.

    section1786(k)(3)).


    Any party who has been removed or suspended from office is also automatically removed, suspended, and prohibited from participating in the affairs of any federally insured financial institution without the express written consent of the appropriate regulatory authority.



    1. What are the grounds for removal of an official?


    NCUA can remove from office any directors, officers, or committee members if:


    They directly or indirectly violated one of the following:


    ► A statute or regulation.


    ► A provision of a Final C&D Order.


    ► Any published written agreement between the NCUA Board and the credit union.

    ► Any condition imposed in writing by the NCUA Board related to granting any application or request by the CU (e.g. application for insurance or 208 Assistance).

    ► Engaged or participated in any unsafe or unsound practice related to the credit union.

    ► Committed or engaged in any act, omission, or practice constituting a breach

    of fiduciary duty.


    And

    Their actions either:

    ► Involved personal dishonesty.

    ► Demonstrated their unfitness to participate in the credit union's affairs.



    And

    Their actions resulted in at least one of the following:

    The credit union has or will suffer financial loss or other damage.


    The interests of the members have or could be prejudiced.


    The party receives financial gain or others benefit because of the violation, practice, or breach

    This concludes the NCUA Letter to credit unions on TOPIC

    If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com. This is Samantha Shares and we Thank you for listening.
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    5 m
  • NCUA's Cybersecurity and Credit Union System Resilience Report

    NCUA's Cybersecurity and Credit Union System Resilience Report
    Jun 25 2024

    NCUA issued its Annual Cybersecurity and Credit Union System Resilience Report today. It is long but worth listening to in this "real time" release of an audiobook version of the Report.
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    55 m
  • Office of the Comptroller of the Currency Risk Perspective for Spring 2024

    Office of the Comptroller of the Currency Risk Perspective for Spring 2024
    Jun 25 2024

    Here is a link to the entire document:

    https://www.occ.treas.gov/publications-and-resources/publications/semiannual-risk-perspective/index-semiannual-risk-perspective.html
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    6 m
  • Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector

    Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector
    Jun 18 2024

    Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector

    https://home.treasury.gov/system/files/136/Treasury-AI-RFI-financial-sector-2024.pdf?utm_medium=email&utm_source=NCUAgovdelivery

    https://www.linkedin.com/in/mark-treichel/
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    1 h y 1 m