NCUA Final Rule Updates Record Preservation Requirements

The NCUA issued a final rule Monday that updates record preservation requirements for credit unions after a catastrophic event.

According to the agency, the final rule was adopted largely as proposed but with two changes based on the feedback received.

The final rule gives credit unions more flexibility in how they maintain a records preservation log. Current rules require credit unions to keep a log that helps identify where important records are stored. The NCUA said this remains important, especially after a major event when quick access to vital records is needed.

However, the final rule makes clear that credit unions can decide what information to include in the log and how to structure it. The log may be electronic or in another format chosen by the credit union. The NCUA also stated that credit unions are not required or expected to manually create or maintain the log.

The agency also decided not to add language suggesting credit unions consult legal counsel when setting record retention periods. While legal review may be helpful for some institutions, the NCUA said it did not want that language to be viewed as a requirement by credit unions or examiners.

The Board also noted that credit union leagues and other industry groups may provide helpful guidance on record retention.

Review Catastrophic Act Preparedness FAQs and the Final Rule