This web seminar discussed recent regulatory changes that have occurred, and how those changes affect boards of directors at credit unions. Sarah Cooke, Editor in Chief, Credit Union Times and Stuart R. Levine, Founder, Chairman and CEO, Stuart Levine & Associates, were joined by Paul Peterson, NCUA Associate General Counsel and Teresa Halleck, President and CEO, San Diego County CU in a robust discussion on the new regulations and what is required of directors at credit unions.
In a survey conducted during the web seminar, a significant number of respondents, 23%, did not fully understand the need for the regulations and how the regulations will increase the safety and security of credit union members. In addition, when asked what was the most important characteristic that a Federal Credit Union Director should have, 52% said Intelligence/good judgment followed, by Integrity at 25%.
The web seminar’s panel agreed that the new regulations would be a tremendous help to the CEO. One panelist said, “Strong CEOs should embrace this and are probably already doing it. Weak CEOs may not like it because they don’t want more questions asked.” The panel agreed that these regulations can act as a springboard to an in-depth discussion on creating a more effective board and encouraging continuing education for board members. “A well educated board is the CEO’s best friend.”
In the end, these regulations will lead to greater member security and better functioning credit unions and the boards that oversee them.
When discussing the new regulations, what questions should CEOs and Boards of Directors consider?
1. Have you had a discussion about the new FCU director duties?
2. Have you reviewed and updated your board and committee charters based on the new regulations?
3. Do you have a policy on board education, including an on-boarding policy for new members? If so, has it been updated based on the new regulations?
4. Does your board understand the risks facing the credit union, and are there internal controls in place to monitor these risks?
5. Should enterprise risk management be a full board responsibility?
6. Does the board understand “Duty of Care” and “Duty of Loyalty”?
For more insights on director requirements click here for a copy of the slide deck: click here for a copy of the executive summary: and click here to view the archive.