On April 21, the NCUA announced a proposed rule to amend regulations governing mergers of insured credit unions into banks under the Federal Credit Union Act. The proposal seeks to eliminate prescriptive procedural, disclosure, and communication requirements, with the stated goal of reducing regulatory burden and providing credit union boards greater flexibility in exercising business judgment.
The proposal would revise existing merger requirements while maintaining core member notice and approval protections. Specifically, the proposal would:
- Remove rigid disclosure formatting. The proposal would eliminate the definition of “clear and conspicuous” and remove certain formatting requirements for member disclosures.
