Federal Register Notices > Federal Register Notice - July 20, 2004
Federal Register Notice - July 08, 2004 (Volume 69, Number 130) [Pages 41202-41204] |
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Chap. VII
Request for Burden Reduction Recommendation; Consumer Protection:
Share Account--Deposit Relationships and Miscellaneous Consumer
Regulations; Economic Growth and Regulatory Paperwork Reduction Act of
1996 Review
AGENCY: National Credit Union Administration (NCUA).
ACTION: Notice of regulatory review; request for comments.
SUMMARY: The NCUA Board is continuing its review of its regulations to
identify outdated, unnecessary, or unduly burdensome regulatory
requirements imposed on federally-insured credit unions pursuant to the
Economic Growth and Regulatory Paperwork Reduction Act of 1996
(EGRPRA). Today, NCUA requests comments and suggestions on ways to
reduce burden in rules we have categorized as Consumer Protection:
Share Account--Deposit Relationships and Miscellaneous Consumer
Regulations, consistent with our statutory obligations. All comments
are welcome.
We specifically invite comment on the following issues: Whether
statutory changes are needed; whether the regulations contain
requirements that are not needed to serve the purposes of the statutes
they implement; the extent to which the regulations may adversely
affect competition; the cost of compliance associated with reporting,
recordkeeping, and disclosure requirements, particularly on small
credit unions; whether any regulatory requirements are inconsistent or
redundant; and whether any regulations are unclear.
We will analyze the comments received and propose burden reducing
changes to our regulations where appropriate. Some suggestions for
burden reduction might require legislative changes. Where legislative
changes would be required, we will consider the suggestions in
recommending appropriate changes to Congress.
DATES: Comment must be received on or before October 6, 2004.
ADDRESSES: You may submit comments by any of the following methods
(please send comments by one method only):
Federal eRulemaking Portal: www.regulations.gov
Follow the instructions for submitting comments.
NCUA Web Site: www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_regs.
. Follow the instructions for submitting comments.
E-mail: Address to regcomments@ncua.gov. Include ``[Your
name] Comments on Third EGRPRA Notice'' in the e-mail subject line.
Fax: (703) 518-6319. Use the subject line described above for e-mail.
Mail: Address to Becky Baker, Secretary of the Board,
National Credit Union Administration, 1775 Duke Street, Alexandria,
Virginia 22314-3428.
Hand Delivery/Courier: Same as mail address.
FOR FURTHER INFORMATION CONTACT: Ross P. Kendall, Staff Attorney,
Office of General Counsel, at the above address or telephone (703) 518-
6562.
SUPPLEMENTARY INFORMATION:
I. Introduction
NCUA seeks public comment and suggestions on ways it can reduce
regulatory burdens consistent with our statutory obligations. Today, we
request input to help us identify which requirements in the category
Consumer Protection: Share Account--Deposit Relationships and
Miscellaneous Consumer Regulations are outdated, unnecessary, or unduly
burdensome. The rules in this category are listed in a chart at the end
of this notice. The EGRPRA review supplements and complements the
reviews of regulations that NCUA conducts under other laws and its
internal policies.
In drafting this notice, the NCUA participated as part of the
EGRPRA planning process with the Office of the Comptroller of the
Currency, Board of Governors of the Federal Reserve System, Federal
Deposit Insurance Corporation, and Office of Thrift Supervision
(Agencies). Because of the unique circumstances of federally-insured
credit unions and their members, NCUA is issuing a separate notice from
the four bank regulatory agencies, which are issuing a joint notice.
NCUA's notice is consistent and comparable with the joint notice,
except on issues that are unique to credit unions.
This category of rules includes Regulation E, Electronic Fund
Transfers, 12 CFR part 205, which is issued by the Board of Governors
of the Federal Reserve System (Federal Reserve). The NCUA has
administrative enforcement authority for Regulation E for federal
credit unions and the Federal Trade Commission has administrative
enforcement authority for federally insured state credit unions.
Regulation E is included in the joint notice in which the Federal
Reserve is participating. Credit unions and other interested parties
seeking to comment on this rule may either submit comments to the NCUA
or the EGRPRA Web site, at www.EGRPRA.gov, as specified in the
joint notice. Commenters may address any aspect of the regulation,
including specifically how the regulation uniquely affects credit
unions.
II. The EGRPRA Review Requirements and NCUA's Proposed Plan
This notice is part of the regulatory review required by section
2222 of EGRPRA.
\1\ The NCUA described the review requirements in our
initial Federal Register notice, published on July 3, 2003 (68 FR
39863). As we noted at that time, we anticipate that the EGRPRA
review's overall focus on the ``forest'' of regulations will offer a
new perspective in identifying opportunities to reduce regulatory
burden. We must, of course, assure that the effort to reduce regulatory
burden is consistent with applicable statutory mandates and provides
for the continued safety and soundness of federally-insured credit
unions and appropriate consumer protections.
\1\ Pub. Law 104-208, div. A, title II, Sec. 2222, 110 Stat.
3009-414; codified at 12 U.S.C. 3311.
The EGRPRA review required that NCUA categorize our regulations by
type. Our July 3, 2003, Federal Register publication identified ten
broad categories for our regulations.
The categories are:
[[Page 41203]]
1. Applications and Reporting.
2. Powers and Activities.
3. Agency Programs.
4. Capital.
5. Consumer Protection.
6. Corporate Credit Unions.
7. Directors, Officers and Employees.
8. Money Laundering.
9. Rules of Procedure.
10. Safety and Soundness.
To spread the work of commenting on and reviewing the categories of
rules over a reasonable period of time, we proposed to publish one or
more categories of rules approximately every six months between 2003
and 2006 and provide a 90-day comment period for each publication. We
asked for comment on all aspects of our plan, including: the
categories, the rules in each category, and the order in which we
should review the categories. Because the NCUA was eager to begin
reducing unnecessary burden where appropriate, our initial notice also
published the first two categories of rules for comment (Applications
and Reporting and Powers and Activities). NCUA published its second
notice, soliciting comment on consumer protection rules in the lending
area, on February 4, 2004 (69 FR 5300). All our covered categories of
rules must be published for comment and reviewed by the end of
September 2006.
The EGRPRA review then requires the Agencies to:
(1) Publish a
summary of the comments we received, identifying and discussing the
significant issues raised in them; and
(2) eliminate unnecessary
regulatory requirements. Within 30 days after the Agencies publish the
comment summary and discussion, the Federal Financial Institutions
Examination Council, which is an interagency body to which all of the
Agencies belong, must submit a report to Congress. This report will
summarize significant issues raised by the public comments and the
relative merits of those issues. It will also analyze whether the
appropriate Federal financial institution regulatory agency can address
the burdens by regulation, or whether the burdens must be addressed by
legislation.
Public Response and NCUA's Current Plan
NCUA received eight comments in response to its first notice, and
four comments in response to its second notice. The comments have been
posted on the interagency EGRPRA Web site,
www.EGRPRA.gov, and can be viewed by clicking on ``Comments.''
We are actively reviewing the feedback received about specific ways
to reduce regulatory burden, as well as conducting our own analyses.
Because the main purpose of this notice is to request comment on the
next category of regulations, we will not discuss specific
recommendations that we have received in response to our earlier
notices here. However, as we develop initiatives to reduce burden on
specific subjects in the future--whether through regulatory,
legislative, or other channels--we will discuss the public's
recommendations that relate to our proposed actions.
In our last notice, we discussed how, in response to specific
suggestions, both NCUA and the bank regulatory agencies divided the
consumer protection regulations into two categories:
(1) Lending-
Related Rules, and
(2) Share Account--Deposit Relationships and
Miscellaneous Consumer Rules. As we had indicated then, some industry
representatives have stated that the requirements imposed by the
Consumer Protection regulations are among the most burdensome. This
notice is devoted to consideration of regulations in the Share
Account--Deposit Relationships and Miscellaneous Consumer Rules
category.
III. Request for Comment on Consumer Protection: Share Account--Deposit
Relationships and Miscellaneous Consumer Rules Category
NCUA is asking the public to identify the ways in which the rules
in the category of non-lending related consumer protection may be
outdated, unnecessary, or unduly burdensome. If the implementation of a
comment would require modifying a statute that underlies the
regulation, the comment should, if possible, identify the needed
statutory change. The rules in this category are listed in the chart
below.
We encourage comments that not only deal with individual rules or
requirements but also pertain to certain product lines. For example, in
the case of a particular type of share account, are any disclosure
requirements under one regulation inconsistent with or duplicative of
requirements under another regulation? Are there unnecessary records
that must be kept? A product line approach is consistent with EGRPRA's
focus on how rules interact, and may be especially helpful in exposing
redundant or potentially inconsistent regulatory requirements. We
recognize that commenters using a product line approach may want to
make recommendations about rules that are not in our current request
for comment. They should do so since the EGRPRA categories are designed
to stimulate creative approaches rather than limiting them.
Specific issues to consider. While all comments are welcome, NCUA
specifically invites comment on the following issues:
Need for statutory change. Do any of the statutory
requirements underlying these regulations impose redundant, conflicting
or otherwise unduly burdensome requirements? Are there less burdensome
alternatives?
Need and purpose of the regulations. Are the regulations
consistent with the purposes of the statutes that they implement? Have
circumstances changed so that the regulation is no longer necessary? Do
changes in the financial products and services offered to consumers
suggest a need to revise certain regulations or statutes? Do any of the
regulations impose compliance burdens not required by the statutes they
implement?
General approach/flexibility. Generally, is there a
different approach to regulating that NCUA could use that would achieve
statutory goals while imposing less burden? Do any of the regulations
in this category or the statutes underlying them impose unnecessarily
inflexible requirements?
Effect of the regulations on competition. Do any of the
regulations in this category or the statutes underlying them create
competitive disadvantages for credit unions compared to another part of
the financial services industry?
Reporting, recordkeeping and disclosure requirements. Do
any of the regulations in this category or the statutes underlying them
impose particularly burdensome reporting, recordkeeping or disclosure
requirements? Are any of these requirements similar enough in purpose
and use so that they could be consolidated? What, if any, of these
requirements could be fulfilled electronically to reduce their burden?
Are any of the reporting or recordkeeping requirements unnecessary to
demonstrate compliance with the law?
Consistency and redundancy. Do any of the regulations in
this category impose inconsistent or redundant regulatory requirements
that are not warranted by the purposes of the regulation?
Clarity. Are the regulations in this category drafted in
clear and easily understood language?
Burden on small insured institutions. NCUA has a
particular interest in minimizing burden on small insured credit unions
(those with less than $10 million in assets). More than half of
federally-insured credit unions
[[Page 41204]]
are small--having $10 million in assets or less--as defined by NCUA in
Interpretative Ruling and Policy Statement 03-2, Developing and
Reviewing Government Regulations. NCUA solicits comment on how any
regulations in this category could be changed to minimize any
significant economic impact on a substantial number of small credit
unions.
NCUA appreciates the efforts of all interested parties to help us
eliminate outdated, unnecessary or unduly burdensome regulatory
requirements.
IV. Regulations About Which Burden Reduction Recommendations Are
Requested Currently
Consumer Protection: Share Account--Deposit Relationships and
Miscellaneous Consumer Rules
Subject
Code of Federal Regulations (CFR)citation
Truth in Savings.................... 12 CFR Part 707.
Privacy of Consumer Financial 12 CFR Part 716.
Information.
Accuracy of Advertising and Notice 12 CFR Part 740.
of Insured Status.
Notice of Termination of Excess 12 CFR 741.5.
Insurance Coverage.
Uninsured Membership Shares......... 12 CFR 741.9.
Disclosure of Share Insurance....... 12 CFR 741.10.
Share Insurance..................... 12 CFR Part 745.
Electronic Fund Transfers 12 CFR Part 205.
(Regulation E--Federal Reserve).
By the National Credit Union Administration Board on June 30, 2004.
Becky Baker,
Secretary of the Board.
[FR Doc. 04-15470 Filed 7-7-04; 8:45 am]
BILLING CODE 7535-01-P
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