|Referenced Sources:||M.G.L. c. 171 s. 6A|
To the Chief Executive Officer of the Credit Union Addressed:
On August 12, 2016, revisions to 209 CMR 50.00: Parity with Federal Credit Unions (Parity Regulations) went into effect. The purpose of this industry letter is to highlight some of the major changes to the regulation. A full listing of changes can be viewed in the red lined version, which is located on the Division of Banks’ website at this link.
The Parity Regulations are the implementing regulations for Massachusetts General Laws (G.L.) chapter 171, section 6A. This statute authorizes the Commissioner of Banks to propose regulations, subject to Legislative review, to authorize activities that are available to federally chartered credit unions in order to make the state charter more competitive. The revised Parity Regulations add several new types of authorities. In addition, they significantly restructure and streamline procedural requirements by allowing credit unions to exercise certain authorities after notice to the Division of Banks (Division) or with no notice requirements, rather than requiring that the credit unions receive advance approval from the Division.