Samantha: Hello, this is Samantha Shares.
Happy new Year!
This episode covers National Credit Union Administration Boardâs
Approval of a Non-Registered Investment Fund Pilot Program
The following is an audio version of that press release.
This podcast is educational and is not legal advice.
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And now the press release.
NCUA Board Approves Non-Registered Investment Fund Pilot Program
On December 30th The National Credit Union Administration Board approved,
by notation vote, an investment pilot program authorized under section 703
point 19 C of the N C U Aâs regulations.
The N C U A will permit up to 30 complex federal credit unions to
engage in investment activities prohibited under part 703 but permitted
by the Federal Credit Union Act.
Note A credit union is considered "complex" if its total assets exceed a
specific threshold set by the N C U A.
As of today,the threshold is 500 million dollars or more in total assets.
A L M First Financial Advisors, LLC., a Securities and Exchange Commission
registered investment advisor, requested the investment pilot program.
The requested pilot program would allow complex federal credit
unions to invest in a series of non-registered investment funds
comprised of consumer loans, as follows:
The pilot fund would be comprised of permissible consumer loans for
federally insured credit unions with maturities of less than 10
years and overnight investments.
Federal credit unions must be complex and have a capital adequacy classification
of well capitalized to invest in the fund and are limited to an aggregate investment
of 50 percent of net worth as defined in part 702 of N C U Aâs regulations.
The pilot program is subject to the A L M First Loan Fund Investment Pilot
Program Requirements and Conditions, which are available on the N C U A website.
Under part 703 of the N C U Aâs regulations, federal credit unions
are authorized to invest in funds that are registered with the S E C
or regulated by the Office of the Comptroller of the Currency, provided
the underlying assets purchased by the fund are permissible under N C
U A rules for federal credit unions.
This concludes the press release
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This is Samantha Shares and we Thank you for listening.