{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC","title":"Proposed Rule on Training for New Board Members","html":"","width":"100%","height":180,"duration":269,"description":"NCUA Proposes to Eliminate Financial Literacy Training Deadline for New FCU DirectorsThe NCUA Board has issued a proposed rule that would remove the requirement that each federal credit union director attain a working familiarity with basic finance and accounting within six months of being elected or appointed.What NCUA is proposing:Eliminate Section 701.4(b)(3), which currently sets a six-month deadline for new FCU directors to achieve working familiarity with finance and accounting, including the ability to read balance sheets and income statements and ask substantive questions of management and auditors.Redesignate the remaining paragraph accordingly.Why the change is occurring:The Board now views the six-month rule as overly prescriptive.FCU members are in the best position to elect qualified directors.The Federal Credit Union Act gives each FCU board \"general direction and control\" but does not direct NCUA to set specific director qualifications.The proposal aligns with the administration's deregulatory priorities under Executive Order 14192.What is NOT changing:The Board still believes directors must have a working familiarity with basic finance and accounting practices.NCUA will continue evaluating board and management capability through the CAMELS Rating System as part of risk-focused examinations.The broader fiduciary duties outlined in Section 701.4 remain in place.The 10,000-foot takeaway: NCUA is stepping back from a prescriptive training deadline and putting the responsibility for director competency back where the Board believes it belongs — with the FCU itself and its members. Boards should not interpret this as a pass on financial literacy. Examiners will still assess whether directors can actually identify, measure, monitor, and control risk. If anything, this shifts the burden from \"complete training within six months\" to \"demonstrate ongoing competence\" — which is a higher bar in practice.Comments are due April 27, 2026.Ready for the blog post...","thumbnail_url":"https://img.transistorcdn.com/DblKo84_Ha6-XOQnfj5k1wmxCkQHeB53BeeKc2eI7dM/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzQ4MTk5LzE3MDM4/NTQxOTktYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}