The NCUA Board approved a proposed rule on Fair Hiring In Credit Unions. The text of the full rule is attached.
In summary, the proposal would update NCUA's regulations to reflect recent statutory changes that provide greater employment opportunities for individuals with prior minor criminal offenses, while still restricting participation in credit union affairs by individuals who pose undue risks. The proposal details the revised consent application process under Section 205(d).
Based on the proposed rule, here are the key points:
The proposal would incorporate Interpretive Ruling and Policy Statement 19-1 and the Fair Hiring in Banking Act into NCUA's regulations on Section 205(d) of the Federal Credit Union Act.
Section 205(d) prohibits certain individuals with prior convictions involving dishonesty or breach of trust from participating in the affairs of an insured credit union without the NCUA's consent.
The proposal would align NCUA's regulations with the statutory changes made by the Fair Hiring in Banking Act, such as expanding employment opportunities for individuals with older or minor criminal offenses.
The proposal provides details on the application process for individuals seeking the NCUA's consent under Section 205(d). It specifies the types of criminal offenses covered, exceptions for certain de minimis offenses, factors considered in evaluating consent applications, and the process if an application is denied.
The proposal amends other NCUA regulations, such as requirements for background checks and notices for new board members at troubled credit unions, to conform to the changes to Section 205(d).