Native Advertising (NEW TOPIC!)

The Federal Trade Commission issued a policy statement explaining how established consumer protection principles apply to different advertising formats, including “native” ads that look like surrounding non-advertising content.

In the "Enforcement Policy Statement on Deceptively Formatted Advertisements," the Commission lays out the general principles the Commission considers in determining whether any particular ad format is deceptive and violates the FTC Act. The policy statement affirms the long-standing consumer protection principle that advertisements and promotional messages that promote the benefits and attributes of goods and services should be identifiable as advertising to consumers.

The policy statement explains that an ad’s format is deceptive if it materially misleads consumers about the ad’s commercial nature, including through any implied or express representation that it comes from a party other than the sponsoring advertiser.  If the source of advertising content is clear, consumers can make informed decisions about whether to interact with the advertising and the weight to give the information conveyed in the ad.

The FTC also issued "Native Advertising: A Guide for Business," to help companies understand, and comply with, the policy statement in the context of native advertising. The business guidance gives examples of when disclosures are necessary to prevent deception and FTC staff guidance on how to make clear and prominent disclosures within the format of native ads.

For additional information, click here for the topic.

(Also – see a new FAQ at the end of the Advertising Deposit Accounts FAQ section!)

Review the information today to help your credit union remain in compliance.

 

NCUA Extends Call Report Deadlines for 2Q, 3Q of 2016

Credit unions will have an additional three days to file second- and third-quarter call reports this year, the NCUA announced Monday. Second quarter call reports will be due by 11:59 p.m. (ET) on July 25, instead of July 22,, while third-quarter call reports will be due at 11:59 p.m. (ET) Oct. 24, instead of Oct. 21.

“We’re giving credit unions a little more leeway for the next two quarters as we complete our study on a future deadline closer to the commercial bank deadline that preserves the key role NCUA’s examiners fill in the validation process,” said NCUA Chair Rick Metsger.

The NCUA first discussed these changes at last week’s board meeting, as part of a larger board briefing on modernizing the call report. This is part of the agency’s Enterprise Modernization Program, which seeks to leverage technology and other changes to allow the NCUA to collect data from credit unions offsite.

These changes could eventually lead to an extended examination cycle, which CUNA strongly advocates, with efforts led by its Examination and Supervision Subcommittee whose members include credit unions and state credit union leagues. 

The agency’s review of the examination process will also include online surveys, focus groups, workshops and a published request for information in the near future.

Metsger also announced the formation of an examination working group that will bring a recommendation within 120 days about extending to the examination cycle.

Source:  NCUA


CFPB proposed Arbitration Rule published

The CFPB has published in today's Federal Register its previously-announced proposal to establish a new part 1040 in Chapter X in title 12 of the Code of Federal Regulations, which would contain regulations governing two aspects of consumer finance dispute resolution. First, the proposed rule would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action with respect to the covered consumer financial product or service. Second, the proposal would require a covered provider that is involved in an arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to the Bureau. The Bureau proposes that the rulemaking would apply to certain consumer financial products and services. The Bureau is also proposing to adopt official interpretations to the proposed regulation. Comments on the proposal are due by August 22, 2016.

Source:  CFPB


Interagency Guidance Regarding Deposit Reconciliation Practices

The OCC, FRB, CFPB, FDIC, and NCUA (collectively, the agencies) have issued “Interagency Guidance Regarding Deposit Reconciliation Practices.” The guidance ensures that financial institutions are aware of supervisory expectations regarding deposit reconciliation practices for customer accounts. Financial institutions are expected to effectively manage their deposit reconciliation practices to comply with Regulation CC and other applicable laws or regulations and to prevent potential harm to their customers.

In addition to policies and procedures, effective compliance management systems for financial institutions include internal controls, training and an oversight and review process.

Source: CUNA/NCUA

 

Agencies propose limits on incentive-based compensation

joint press release from six federal agencies (FDIC, FHFA, FRB, NCUA, OCC, and SEC) invites public comment on a proposed rule that would prohibit incentive-based compensation arrangements that encourage inappropriate risks at covered financial institutions. The deadline for comments on the proposal, which was submitted for publication in the Federal Register, is July 22, 2016. The proposed rules would apply to covered financial institutions with total assets of $1 billion or more. The requirements are tailored based on assets, and covered institutions would be divided into three categories:

  • Level 1: institutions with assets of $250 billion and above;
  • Level 2: institutions with assets of $50 billion to $250 billion; and
  • Level 3: institutions with assets of $1 billion to $50 billion.

Source:  Federal Reserve


FCC Proposes TCPA Rule for Government Debt Collection Calls

The Federal Communications Commission (FCC) released its proposed rule for the collection of debts owed to the federal government. CUNA previously wrote about details of a draft Notice of Proposed Rulemaking (NPRM) in letters responding to federal lawmakers who oppose the new exemption for government debt collectors.

The proposed rule was prompted by the Budget Act of 2015, (Budget Act) which amended to the Telephone Consumer Protection Act, (TCPA) to create exemptions for calls made to cell phones when collecting a debt owed to, or guaranteed by, the federal government. This change means that if calls are made solely pursuant to the collection of a debt owed to or guaranteed by the United States, the caller is no longer required to have the prior express consent of the recipient.

In the notice, the FCC seeks comments on the implementation of the Budget Act amendments, and questions, such as which calls are covered by the phrase “solely to collect,” how we should restrict the number and duration of such calls, and how to implement such restrictions.

CUNA has previously expressed concerns about carving out special treatment for government debt collectors, and plan to urge the FCC to extend this same exemption to financial institutions. CUNA will be preparing a Comment Call on this proposal, and seeking feedback from credit unions.

Comments are due on June 6, 2016, with a Reply Comments due June 21, 2016.


ICYMI:  What’s Happening in Other States

Arizona enacted a credit union act modernization bill that permits credit unions to compensate directors and conduct prize-linked savings programs, and in Michigan, an extensive credit union act recodification is on the verge of passage. Rep. Brad Sherman also recently requested CFPB review Property Tax Assessed Clean Energy (PACE) programs as legislation is being considered in a number of states. 

Source:  CUNA


CUNA Advocacy Update

The Regulatory Advocacy Report is now combined with CUNA’s Legislative Update into a comprehensive CUNA Advocacy Update.  The new Advocacy Update is published at the beginning of every week, is accessible here and keeps you on top of the most important changes in Washington for credit unions--and what CUNA is doing to monitor, analyze, and influence government agencies and federal law. 

Prior CUNA Regulatory Advocacy Reports have been archived and are available here.


ComplySight: 30 Day Free Trial!

Would you like to get email notifications when regulations change? Small to large credit unions across over 30 different states do - and that's just one of the benefits. See for yourself with a free, 30-day trial of ComplySight.

ComplySight provides visibility, tracking, measuring and reporting for compliance activities through a single application. It is an affordable solution that:

  • Notifies users when regulations are finalized.
  • Assists in tracking Examiner and Audit findings.
  • Provides a summary of applicable regulations to test against existing policies, practices and procedures.

Compliance doesn't have to be overwhelming and this is a great opportunity to make things easier on yourself. 

League InfoSight is offering a free, 30-day trial of ComplySight so you can see the benefits first hand. It's easy to get started. Just visit us online.

FREE Webinars on ComplySight, the League's latest compliance resource

Registration is now open for your front row seat to learn about ComplySight, the league's newest addition to your compliance toolbox. If you're looking for a solution to the compliance tidal wave, this system is for you!

We offer two options for learning more about ComplySight, “live” and “recorded” webinars.

LIVE, INTER-ACTIVE WEBINARS

For “live” webinars, Click on the DATE of the webinar to sign up and obtain registration instructions. (Note:  If a meeting number is required to register, this number follows the date/day.) This should be done at least 15 minutes prior to the start of the webinar to allow for registration to be accepted and login instructions received. 

Please note that all of the webinars require a password, which is “1234.”  The times listed are in the Eastern Time Zone.

Introduction to ComplySight

Designed to introduce and show the many features and benefits of ComplySight.

June 15, 2016  ♦  (Wednesday)  ♦  595 911 248  ♦  11:30am – 12:30pm (ET)

ComplySight Training & Tips

An opportunity to review specific ComplySight topics in detail. Topics change so users can continue to learn additional ComplySight functionality. Come with questions!       

June 29, 2016   ♦  (Wednesday)   ♦  595 254 140   ♦  3:30pm – 4:30pm (ET)

RECORDED WEBINARS – Available ANY Time!

For “recorded” webinars, click on the title of the webinar to listen.  Users may be asked to download WebEx, which is a safe download for viewing the webinars.  These are also available on the Dashboard in ComplySight and are available 24/7! 

Introduction to ComplySight
Designed to introduce and show the many features and benefits of ComplySight.

ComplySight Training & TipsWhere to Start?
This webinar will: suggest a starting point as a new ComplySight user, discuss how Factor Grading works, review the Action Item Build/Edit process, and discuss the need for a compliance management tool that regulators - and you - will appreciate.

ComplySight Training & Tips Regulatory Alerts, Assigning Employees, Preview of L2.5, Tools in the Help Area
What should be done when you get an email about a Regulatory Alert?  Where are “old” Regulatory Alerts? How do I assign an employee to an Area, and what will be different with the upcoming Level 2.5?  And – what tools are available in the Help area?  This webinar will explore all of this – and more!

ComplySight Training & TipsHow to Export Data
When you need to archive or copy data out of ComplySight for a fresh start or to provide information for a Board meeting, this webinar will explain the process.

ComplySight Training & TipsReports in ComplySight – NEW!!!
What information is contained on the reports in ComplySight and how are they used?

InfoSight
Compliance eNEWSLETTER

May 27, 2016
Vol. 10, Issue 21


Created in partnership with the

Credit Union National Association

CU Compliance Connection

In this recently released video, Glory LeDu, Manager of League System Relations, discusses the Compliance outlook for the 1st quarter of 2016 and gives us a review of the 4th quarter of 2015. View the CUBE TV video here.

May, 2016
  • May 30th, 2016: Memorial Day - Federal Holiday
June, 2016 July, 2016 September, 2016 October, 2016 November, 2016
  • November 6th, 2016: Daylight Savings Time Ends
  • November 11th, 2016: Veterans' Day - Federal Holiday

CUNA AND CUNA Webinars

CUNA offers hundreds of online training events that make it easy for you to learn right at your desk. Whether you are looking for a beginner course or want a comprehensive understanding on a specific topic, CUNA webinars, audio conferences and eSchools have what you need.  Click here for updates on compliance, operations, lending topics and more!