Newsroom
NAFCU outlines cons of third party vendor authority for the NCUA ahead of hearing
Today, the House Financial Services Committee Task Force on Artificial Intelligence (AI) will hold a hearing examining the use of AI within regulatory technology for the financial services industry. Ahead of the hearing, NAFCU’s Brad Thaler reiterated opposition for granting the NCUA additional authority to examine third party vendors. Of note, NCUA Director of the Office of Examination and Insurance, Kelly Lay, will serve as a witness during the hearing.
Thaler, NAFCU’s vice president of legislative affairs, noted there are tools already in place for the agency to get access to information about vendors and the that agency's time and resources are "better focused on reducing regulatory burden by coordinating efforts among the financial regulators."
Thaler also explained that implementation of such authority would incur significant expenditures for the NCUA, that would ultimately be borne by credit unions and their 130 million members due to the fact that credit unions fund the NCUA budget.
Alternatively, Thaler suggested that Congress should require the NCUA to measure the costs and benefits of developing a parallel vendor supervision program versus obtaining vendor examination reports from the FFIEC agencies. "The NCUA should also supply a clear description of the stated objectives and scope of a third-party supervision program," added Thaler. He also noted that Congress could require other FFIEC regulators to share their reports with NCUA, rather than authorize NCUA to create a costly duplicative program.
"NAFCU believes in a strong NCUA, but we also believe that the NCUA should stay focused on where their expertise lies – regulating credit unions," wrote Thaler.
In addition, Thaler called on Congress to reject the Strengthening Cybersecurity for the Financial Sector Act, legislation recently introduced by Rep. Bill Foster, D-Ill., that would give both the Federal Housing Finance Agency and the NCUA additional third-party vendor examination authority. NAFCU has previously opposed this legislation and expressed concerns about the wide authority it would give the NCUA and the potential costs to credit unions.
Thaler sent a similar letter to the Senate Banking, Housing, and Urban Affairs Committee Thursday to share the association’s views on this topic.
NAFCU will continue to oppose granting this additional authority for the NCUA and will keep members up to date via NAFCU Today on relevant regulatory changes.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
Get daily updates.
Subscribe to NAFCU today.