regulatory and compliance issues and considerations

More documents

Recommendations

Info

About the Presenter... R. Todd Sherpy is a founding partner in the law firm of Sherpy & Jones, P.A. The firm is dedicated to serving all legal needs of Credit Unions; and provides day-to-day compliance, compliance auditing, training and consulting services to Credit Unions throughout the United States. Todd dedicates a large portion of his time to teaching Credit Unions, having made presentations in 43 States and participating as an instructor through CUNA & Affiliates Regulatory Compliance, Collections and Credit Counseling, Marketing, Consumer Loan Officer and Economics and Investments Schools and Conferences. Todd authored CUNA’s RegTrac Compliance Modules on Consumer, Real Estate Lending, and Member Business Lending; CUNA’s White Paper on Privacy; CUNA's Guide to Compliance with Revised Article Nine; CSG’s Volunteers Achievement Program on Directors’ Liability, and many other Credit Union resources. Todd is General Counsel to the South Carolina and consults with several other Credit Leagues on a regular basis. CURES and SimpliLend: 1992 Todd developed CURES, LLC., (Credit Union Resources and Educational Services) and SimpliLend to serve the compliance/regulatory needs of Credit Unions. CURES includes the "Compliance Community Plan" under which Credit Unions are offered audit and/or continuing compliance services at a significant saving through cooperative participation in a plan serving the common needs of many Credit Union. Under the Plan, the firm and/or CURES now works with approximately 500 Credit Unions in 27 States. Under this plan, CURES provides participants with secure web access to all electronic policies, procedures, notices, updates, explanations, internal training guides, as well as many forms from simple collection and bankruptcy documentation to full member account services guides and other forms and day-today resources. Todd serves on the Credit Union Sub-committee of the American Bar Association, the Operations and Supervisory Committee’s of the Credit Union Committee; and chaired the Consumer Law Section for the South Carolina Bar. Todd, whose family has a tradition of working with and supporting Credit Unions, then began his current practice. Todd is married to the Executive Officer at a Large Georgia Credit Union. Todd has two daughters, Caroline and Catherine who he absolutely adores. The Largest Credit Unions to whom we provided in the last year include: Boeing West Employees Credit Union Mountain America Credit Union Founders Federal Credit Union Langley Federal Credit Union State Farm Credit Union Black Hills Federal Credit Union Arizona Federal Credit Union Robins Federal Credit Union Elevations Federal Credit Union Bankfund Staff Federal Credit Union Sharonview Federal Credit Union SC Federal Credit Union Addison Avenue Federal Credit Union 66 Federal Credit Union Centris Federal Credit Union Tinker Federal Credit Union American Airlines Federal Credit Union Piedmont Aviation Federal Credit Union Lake Michigan Credit Union POPA Federal Credit Union Aberdeen Proving Ground Federal Credit Union Day Met Credit Union Pearl Harbor Federal Credit Union Leaders Federal Credit Union SPC Cooperative Credit Union Mid-America Credit Union Association TruChoice Federal Credit Union Memphis Area Teachers Credit Union Credit Union of Colorado Atlantic Regional Federal Credit Union Smaller Credit Unions to whom we provided in the last year include: GHS Federal Credit Union Aberdeen Federal Credit Union Ball State Federal Credit Union Bangor Federal Credit Union Bay Gulf Federal Credit Union Central Sunbelt Federal Credit Union Community United Federal Credit Union Delaware First Federal Credit Union Family Advantage Federal Credit Union Fort Campbell Federal Credit Union Jefferson Financial Credit Union Leaders CU Credit Union ListerHill Federal Credit Union Maui Teachers Federal Credit Union Kahului Federal Credit Union New Orleans Firefighters Federal Credit Penobscot County Federal Credit Union PortAlliance Federal Credit Union Union Savannah Postal Federal Credit Union Strategic FCU Tuscaloosa County Credit Union We provide or have provided in the last year services to the following non-Credit Union entities: CUNA Mutual Insurance, CUNA CPD or Minnesota Mutual Insurance Company, Securian, Inc other affiliated companies Inc. South Carolina Credit Union League North Carolina Credit Union League Hawaii Credit Union League Indiana Credit Union League Missouri Credit Union League Maine Credit Union League Michigan Credit Union League Florida Credit Union League Virginia Credit Union League SD-ND Credit Union League Georgia Credit Union Affiliates The Financial Forms Company, LLC Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 2
Introductory Notes: Basic Obligations, Standards and Liability Issues Related to Knowledge and Training and Methods for Protecting Senior Management and Volunteers from the Possibility of Liability Actions An Overview of the Law of Negligence, Liability, Duties of Management and Volunteers, Insurance-Bonds and Something Called FIRREA – and how the American “Business Judgment Doctrine” can Protect All who Follow a Few Basic Rules. Duties of Senior / Executive Management and a Credit Union’s Volunteers. “Preserve the Credit Union for the Benefit of the Credit Union’s Members” 64-2009 Community Notice // FIRREA Q & A I love some of the questions y’all pose: Question: Todd, when you refer to FIRREA in connection with recent emails addressing Insurance-Bond Coverages “The Business Judgment Rule;” Training; Proper Policies, Procedures and Risk Assessments; Etc. … are you just trying to make our skin crawl? Why? Response: Yes – absolutely I am trying to make your skin crawl. It is usually my best shot to get folks to listen. If I can do that … then we will never have to actually address FIRREA; and the very personal liability that can be imposed on Credit Union management and Volunteers (personal not insured – not bonded liability). Here is a brief summary of FIRREA for you to consider in regard to your question: SUMMARY: “Financial Institutions Reform, Recovery and Enforcement Act of 1989Title IX: Regulatory Enforcement Authority and Criminal Enhancements - Subtitle A: Expanded Enforcement Powers, Increased Penalties, and Improved Accountability - Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to define the personnel liable for civil and criminal penalties for participating with knowing or reckless disregard with respect to: (1) any violation of any law or regulation; (2) any breach of fiduciary duty; or (3) any unsafe or unsound practice likely to cause an adverse effect upon an insured depository institution. Enhances the enforcement powers of banking regulatory agencies to include the authority to: (1) require restitution, reimbursement, indemnification, or guarantee against loss; (2) restrict the institution's growth; (3) dispose of any loan or asset; (4) rescind agreements or contracts; (5) require the employment of qualified Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 3
Page 1: Compliance Update - I REGULATORY AN
Page 5 and 6: performed by boards of directors. T
Page 7 and 8: What if an applicant “volunteers
Page 9 and 10: Please answer the following questio
Page 11 and 12: MULTIPLE ISSUES AND RESOURCES - SOM
Page 13 and 14: • Review of the negative shares r
Page 15 and 16: illustrates how certain provisions
Page 17 and 18: SAMPLE CREDIT UNION BUSINESS PLAN M
Page 19 and 20: EMPLOYMENT AGREEMENT Revise to addr
Page 21 and 22: 13. Evaluate the job performance of
Page 23 and 24: 2. By Employer For No Cause. Employ
Page 25 and 26: Vendor Due Diligence II Security As
Page 27 and 28: Vendor Due Diligence VII TERM AND T
Page 29 and 30: Vendor Due Diligence XII Backgroun
Page 31 and 32: Monitoring the Vendor At a minimum,
Page 33 and 34: NOTE: The BSA also contains a “wh
Page 35 and 36: (5) Confidentiality of reports. SAR
Page 37 and 38: PRIVACY - INFORMATION SECURITY Priv
Page 39 and 40: Disposal of Consumer Reports and Ot
Page 41 and 42: Compliance Update - II REGULATORY A
Page 43 and 44: Introductory Notes: Knowing if you
Page 45 and 46: I. POLICY AND GUIDELINES Portions O
Page 47 and 48: any CUSO. [Gifts may not be accepte
Page 49 and 50: Conference and Seminar Costs Fees f
Page 51 and 52: We have stated that there must be a
Page 53 and 54:
IV. POLICY REGARDING CONFLICTS OF I
Page 55 and 56:
public, even though, such relatives
Page 57 and 58:
and other relatives who live in the
Page 59 and 60:
protection, and the reimbursement o
Page 61 and 62:
Legal / Compliance Consultation Not
Page 63 and 64:
MERGER AND CONSOLIDATIONS ISSUES NO
Page 65 and 66:
information of which unauthorized d
Page 67 and 68:
A Review of ‘Red Flags’ and wha
Page 69 and 70:
Business Depositors: Understanding
Page 71 and 72:
WHAT POLICIES, PROCEDURES AND RISK
Page 73 and 74:
16. Conflict of Interest/Code of Et
Page 75 and 76:
Union Assessment 33. Identity Theft
Page 77 and 78:
Procedures 60. Training Policy See
Page 79 and 80:
Also - consider the other changes c
Page 81 and 82:
policies, procedures and documents
Page 83 and 84:
Underwriting Advertising In July 20
Page 85 and 86:
135-2009 Community Notice // OE/CE
Page 87 and 88:
Credit Union’s lien right are not
show all

regulatory and compliance issues and considerations

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?