On February 10, the NCUA announced a fifth round of proposed regulatory changes under its ongoing “Deregulation Project” (previously covered by InfoBytes here) seeking to reduce administrative burden and eliminate duplicative requirements for federally insured credit unions. The agency requested public comments on three proposals published in the Federal Register:

1. Conversion of Insured Credit Unions to Mutual Savings Banks: The NCUA proposed amending 12 CFR 708a to eliminate procedural, disclosure and communication requirements the agency deems “overly prescriptive.” For example, the proposal would eliminate the definition of “clear and conspicuous,” the obligation to publish certain notices in the newspaper, and certain requirements for communications with members about a proposed conversion. It would also eliminate nonbinding “Voting Guidelines.”
2. Mergers of Insured Credit Unions; Voluntary Termination or Conversion of Insured Status: The NCUA proposed revising 12 CFR 708b to eliminate specific formatting mandates for notices of a vote on insurance termination and the requirement to post member comments regarding the termination online. The agency emphasized that credit unions must still provide clear and conspicuous notice to members, but with fewer prescriptive requirements.
3. Chartering and Field of Membership for Federal Credit Unions: The NCUA proposed rescinding Interpretive Ruling and Policy Statement 06-1 (IRPS 06-1), noting that current field of membership requirements are already stated in the agency’s Chartering and Field of Membership Manual. The agency explained that rescinding IRPS 06-1 would reduce confusion and ease compliance by limiting the number of sources credit unions must consult.

Comments on the three proposals must be submitted by April 13.