NCUA finalizes safe harbor, other rules, gets ESM update
In addition to issuing 2 proposals, the NCUA board finalized 3 rules at its Friday board meeting, and heard an update on the agency’s Enterprise Solutions Modernization (ESM) program.
The ESM program is a project designed to update NCUA information technology applications and infrastructure.
According to NCUA, its goal is to:
- Provide for more offsite examination and supervision work;
- Provide a single entry point for credit unions to conduct business with NCUA; and
- Allow NCUA staff ease of access to information they need on a credit union.
Agency staff indicated a request for proposal will be forthcoming on an AIRES replacement solution, a technical foundation for ESM, a central user interface and secure file transfer portal.
The final rules approved are:
- Safe harbor: Updates regulations regarding treatment by the NCUA board, as liquidating agent or conservator, of financial assets transferred by the credit union in connection with a securitization or participation. Ancillary to this the Board issued a legal opinion ratifying the authority of Federal credit union to issue and sell securities as an authorized incidental power;
- Statutory inflation of civil money penalties: Requires federal agencies to adjust the maximum amounts of civil money penalties to account for inflation; and
- Freedom of Information Act: Makes minor changes to revise NCUA’s procedures for disclosing records under the act, and for resolving disputes through a public liaison and the Office of Government Information Services.