NCUA Issues Succession Planning Proposal

NCUA issued a proposed rule on succession planning and heard briefings on supervisory priorities and the Central Liquidity Facility (CLF) Thursday. The board also finalized a rule on statutory inflation of civil money penalties.

The proposed rule would require federal credit union boards of directors to establish and adhere to processes for succession planning. It would provide credit unions “broad discretion in implementing the proposed regulatory requirements to minimize any burden.” 

The rule says an FCU must establish a plan for positions such as officers of the board, management officials, executive committee members, supervisory committee members, and credit committee members. The proposal encourages all credit unions to have plans in place to mitigate consolidation and prepare for future retirements.

Comments on the succession planning proposal are due by April 4. View the Federal Register entry.

The final rule on statutory inflation of civil money penalties adjusts the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation, as required by federal law.

The board briefings covered:

• NCUA’s 2022 supervisory priorities, which NCUA issued in a Letter to Credit Unions earlier this month.
• The impact of expiring COVID-19 relief legislation on the Central Liquidity Facility.