Final rule provides greater transparency in voluntary mergers

Members of a federally insured credit union seeking a voluntary merger will be better-informed about that merger and have more time to consider their votes under a final rule (Parts 701, 708a, and 708b) approved by the NCUA Board in a recent meeting. The final rule will apply to all federally insured credit unions and […]

Members of a federally insured credit union seeking a voluntary merger will be better-informed about that merger and have more time to consider their votes under a final rule (Parts 701, 708a, and 708b) approved by the NCUA Board in a recent meeting.

The final rule will apply to all federally insured credit unions and will:

  • Increase the minimum required time for notice to members before a merger vote to 45 days;
  • Require the merging credit unions to disclose merger-related compensation increases above $10,000 or 15 percent of compensation, whichever is greater, for certain employees and officials of the merging credit union;
  • Clarify the contents and format of the membersā€™ notice to provide better information; and,
  • Provide a method to communicate to the NCUA regarding the proposed merger.

The final rule, available onlineĀ here, will become effective Oct. 1, 2018.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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