How To Find An Ally To Meet Compliance Challenges

Credit unions are collaborating with one another and building cooperative networks to tackle increasingly challenging regulatory issues.

The influx of regulations credit unions must accommodate for is occurring at a pace not seen since the 1930s. During the past five years andprompted by the Great Recession Congress has launched spending and stimulus programs to stave-off a full-on economic depression. But with the government’sinjection of cash comes limitations to the financial system in the form of new legislation and regulatory authority.

The Dodd Frank Wall Street Reform and Consumer Protection Act is Congress’s most well-known legislative response. Weighing in at nearly 900 pages, Dodd-Frank has in turn created more than 7,000 pages of proposed and newly final regulations,many of which credit unions of all sizes must comply.

Dodd-Frank also established the Consumer Financial Protection Bureau, a new regulator that directly oversees financial institutions with assets of $10 billion or more. The creation of the CFPB has caused a stir among financial institutions that are uncertainabout what to expect, and its regulations are creating a chilling effect on compliance departments at smaller institutions nationwide.

Credit unions are now operating in a hyper-regulatory environment that challenges compliance officers who are trying to accommodate for new, increasingly detailedstandards. Many credit unions have had to substantially change processes and structures, and they need help in finding new ways to meet regulatory demands.

Although there are many strategies institutions can adopt on their own, many credit unions are opting to explore collaborative methods. This quarter’s CooperativeStrategies takes a look at the ways in which credit unions are joining forces to overcome regulatory challenges.

Read on to learn more about:

  • How compliance officers are reaching out to peers and sharing perspectives on policies and procedures.
  • New collaborative arrangements between leagues and credit unions. Through economies of scale, leagues can offer aggregated advocacy with regulators, education on new regulations, and opportunities to share with and learn from othercredit unions.
  • The CUSO solution. Credit union service organizations are offering a range of insight and services and performing back-office functions that would otherwise consume a compliance officer’s time and attention. <

Want to learn more? Click on the articles in the Subscriber Package below for a deeper dive into Cooperative Solutions To Address Compliance Questions .

June 2, 2014

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