CrossState, America’s Credit Unions, and State Leagues Issue Letter on Incentive Base Compensation Arrangements

CrossState, America’s Credit Unions, and state Leagues sent a letter to NCUA about a joint proposed rule to implement section 956 of the Dodd-Frank Act. The proposal includes additional regulations on incentive-based compensation arrangements and requires covered financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate Federal regulator, like the NCUA. The letter notes that the joint proposed rule is unnecessary for credit unions due to the absence of risky incentive-based compensation arrangements at credit unions and the more flexible approach that guidance would provide.