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HCUA Encourages Input on Incentive-Based Compensation Rule

The Heartland Credit Union Association (HCUA) encourages member credit unions to submit comment letters to the National Credit Union Administration (NCUA) regarding a joint proposal to regulate incentive-based compensation at financial institutions. Comment letters are due to NCUA by July 22, and they can be submitted via Credit Union National Association's (CUNA) website.

The proposed rule would prohibit incentive-based payment arrangements deemed to encourage inappropriate risks and require those financial institutions to disclose information concerning these arrangements to the appropriate federal regulator. It applies to financial institutions, including credit unions with $1 billion or more in assets as required by the Dodd Frank Act. These “covered” financial institutions or “covered” credit union (CCU) are divided into three tiers referred to levels by proposed regulation. The levels are: 

  • Level 1 - greater than or equal to $250 billion 
  • Level 2 - greater than or equal to $50 billion and less than $250 billion  
  • Level 3 - greater than or equal to $1 billion and less than $50 billion 

Visit CUNA's website for more information and to submit a comment letter.

HCUA will be submitting comment letters on behalf of Kansas and Missouri credit unions. Additional comment letters from member credit unions will help bolster our message.