In September 2010, the NCUA Board adopted major revisions to its corporate credit union rule. As part of those revisions, effective April 18, 2011, all activities of corporate credit union service organizations (CUSOs) must be preapproved by the NCUA. 12 C.F.R. §704.11(e). Two activities that are already preapproved in §704.11(e) are: 1) brokerage services, as defined in the Securities Exchange Act of 1934; and 2) investment advisory services, as defined in the Investment Advisers Act of 1940. See 15 U.S.C. §§78c(a)(4)(A), 80b-2(a)(11). This webpage and accompanying links details a corporate credit union’s corporate credit union responsibilities for complying with §704.11(e), the approval process for requesting additional CUSO activities, and a list of those additional activities that are approved for corporate CUSOs, including reporting requirements and other restrictions on any CUSO which desires to engage in those activities.
The approved activities are described on the link above labeled “Approved CCA.” The activities are presented in matrix form, under the following headings: Category (general class of service), Activity (specific service), Description of Service (explanation of service), and Activity Conditions (limitations or requirements on conducting the activity). In addition to the Activity Conditions listed in the matrix, all corporate CUSOs engaged in a particular approved activity must provide NCUA with the following reports by the 25th of the first month after the quarter-end or year-end, unless indicated otherwise:
- Quarterly: Financial statements and performance reports;
- Annually: Annual report to owners, audited financial statements (30 days after receipt), strategic plan, list of current owners with percentages of ownership, and descriptive list of all products and services provided by the CUSO.
NCUA maintains a CUSO Registry (opens new window), an online system through which credit union service organizations (CUSOs) report information directly to NCUA. NCUA regulations require a CUSO to register and report annually. The annual registration and reaffirmation window will remain open between Feb. 1 and March 31. Newly formed CUSOs must register online within 60 days of forming. The CUSO Registry (opens new window) remains open throughout the year for registration, amendments and submission of required reporting. Section 704.11(g)(4) of the corporate rule requires registration of corporate CUSOs via the CUSO Registry (opens new window).
Corporate CUSOs will need to register basic information about the CUSO. Annual and quarterly reports noted above and previously submitted via mail or e-mail transmission to ONES will now be submitted through the CUSO Registry (opens new window). Please ensure that any CUSO or CUSO subsidiary that you invest in, lend to, or wholly own registers with NCUA through the CUSO Registry (opens new window).
NCUA may, from time-to-time, add additional approved activities to the matrix. Once an activity is described in the matrix, any corporate CUSO may engage in that activity without further approval from NCUA.
Questions about the approval process or the matrix of approved activities should be addressed to:
National Credit Union Administration
Office of National Examinations and Supervision
1775 Duke Street, Alexandria, VA 22314