This change in the fee scale reduces the financial burden for 1086 small credit unions. The comment period is 120 days.
Credit unions have the fiduciary responsibility to monitor and control investment risk.
They decide whether to select less risky investments or more sophisticated instruments that require more knowledge, skill, and analysis. This proposal requires credit union boards to understand, review, and manage their investment portfolios. NCUA is aware that implementing a regulation that restricts or prohibits certain types of securities would be inadequate and quickly circumvented by the continued innovations in the financial markets. NCUA believes that the responsibility for making investment decisions rests with the credit union board, and that credit unions that assume more potential risk should meet higher standards. The amendment allows credit unions to operate on one of three levels.