NCUA Issued Final Rule on Succession Planning

The National Credit Union Administration (NCUA) issued a proposed rule on succession planning, which would require the board of directors at federal credit unions to establish succession plans according to the rule’s processes.  Under the proposed rule, the directors of credit unions must have knowledge of the succession plan.  To counter regulatory burden, the rule allows credit unions to implement the changes with broad discretion.  The NCUA acknowledges that the rule only applies to federal credit unions, but encourages all credit unions to create a succession plan to ensure continued operation.  The comment period ends on April 4, 2022.