NCUA Proposes Enhanced Fidelity Bond Due Diligence by Boards and Supervisory Committees
A link to the proposal can be found here: https://www.govinfo.gov/content/pkg/FR-2018-11-23/pdf/2018-25402.pdf

The Federal Credit Union Act already requires boards to ensure that their credit unions maintain adequate fidelity coverage. The purpose of this coverage is to provide protection on behalf of the credit union in the event that one of its employees commits crimes involving dishonesty. Under this proposal, boards would be responsible for reviewing applications for the purpose or renewal of fidelity bond coverage. A non-employee member of the board would have to personally sign the application.
Does your credit union have established procedures for the board to review fidelity bond coverage?
Does your credit union have established procedures for the Supervisory Committee to review fidelity bond coverage?
What procedures does your credit union use in assessing fidelity bond coverage?
Do you believe these existing procedures are adequate or that additional protections are required?
Why?
Do you feel it is appropriate for NCUA to require that a non-employee member of the board sign as a representative of the credit union for the purchase of fidelity bond coverage?
 
Why?
The NCUA is proposing to require supervisory committees of federally insured credit unions to conduct a review of all applications for the purchase and renewal of fidelity coverage. In the preamble to the proposal, it says that this requirement would be a function “within the responsibility of a supervisory committee” and will add an additional layer of review. This is in addition to the board conducting its own review.
Do you support or oppose requiring supervisory committees to independently review a credit union’s fidelity bond coverage?
Why?
Do you have any additional comments or concerns?
100% Complete