Final rules on fair hiring and simplification of federal share insurance for trust accounts were approved by the federal credit union regulator board at its meeting Thursday.
- Incorporated its Second Chance Interpretive Ruling and Policy Statement and the Fair Hiring in Banking Act into its regulations, and;
- Simplified federal savings insurance regulations by establishing a “trust accounts” category.
Both rules were approved unanimously by the three-member board.
The first rule allows people with convictions for certain minor or older offenses to work in the credit union industry without applying for the NCUA Board’s approval, the agency said in a release. It also:
- Excludes minor offenses, including certain designated lesser offenses, from the scope of Section 205(d), and excludes most drug-possession offenses and older misdemeanors from the “dishonesty or breach of trust” category of covered crimes.
- Amends regulations governing the conditions under which newly chartered or troubled federally insured credit unions must notify the NCUA of any proposed changes to its board of directors, committee members, or senior executive staff.
The second rule aligns NCUA rules with those of the Federal Deposit Insurance Corp. (FDIC) regarding trust accounts, the credit union regulator said.
NCUA said its trust accounts category would provide Share Insurance Fund coverage of funds in both revocable and irrevocable trusts deposited at federally insured credit unions in the accounts of members or those otherwise eligible to maintain insured accounts.
The agency said the rule aligns National Credit Union Share Insurance Fund (SIF) coverage provided to federally insured credit union members’ revocable and irrevocable trust accounts with the coverage provided to consumers who maintain revocable and irrevocable trust accounts at federally insured banks.
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