In its second meeting of the month, the NCUA Board met Wednesday and unanimously approved a rule that codifies an interagency statement on the role of supervisory guidance, issued by five federal financial regulatory agencies in September, 2018.
The 2018 interagency statement reiterated well-established law by stating that, unlike a law or regulation, supervisory guidance does not have the force and effect of law, according to the NCUA. “As a result, supervisory guidance does not create binding legal obligations for the public. The proposed rule is intended to confirm that agencies will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities.”
In addition to the NCUA, the proposed rule was approved for public comment earlier by the Federal Reserve Board, CFPB, FDIC and OCC.
“I am pleased that the NCUA joins with the other financial regulatory agencies in providing the industry and supervisory staff, in a transparent manner, with guidance that enhances consistency in the supervisory approach,” said Rodney Hood, NCUA chairman.
The board had previously included a request for information on supervisory guidance review and improvements in communications on its Oct. 15 meeting agenda, however, the item was not discussed.
The board’s next meeting is Nov. 19, which will be livestreamed at 10 a.m. on the agency’s website.