On July 29, MCUL & Affiliates provided its comment letter to the NCUA regarding the regulator’s Derivatives Proposal. MCUL expressed its appreciation of the NCUA’s consideration of alternative products and investments for credit unions to help mitigate risk in a rising interest rate environment. The league’s primary concerns about the proposed rule are the costs associated with the application fees and the burdensome qualification requirements. MCUL is also concerned that the NCUA’s proposal to implement a fee for derivatives activity could set a precedent for the NCUA to impose fee structures for other new products or services which may be essential to the health and survival of the credit union industry.
The proposed rule and request for comment can be found here.