Compliance

Crises Create Compliance Burdens, and 'This One's a Doozy'

July 14, 2010
/ PRINT / ShareShare / Text Size +
Compliance

Board members should ask "piercing questions" about compliance issues, says Kathy Thompson, CUNA's senior vice president for compliance and legislative analysis (far right).

Other speakers during this breakout session were Alan Cameron, president/CEO of the Idaho CU League, and Donna Chardeen, director of compliance and fraud mitigation at SEFCU, Albany, N.Y.

View more conference coverage

Every financial crisis in the past has led to more regulation, but “this one's a doozy,” with 61 regulatory pronouncements made in 2009 and more expected in 2010, said Alan Cameron, president/CEO of the Idaho Credit Union League, and chairman of the Credit Union National Association's (CUNA) Consumer Protection subcommittee.

Cameron was one of three panelists who spoke about coping with a growing compliance burden in a breakout session Monday at The 1 Credit Union Conference in Las Vegas. Others were Donna Chardeen, director of compliance and fraud mitigation at SEFCU, Albany, N.Y., and Kathy Thompson, CUNA senior vice president for compliance and legislative analysis.

Regulations help ward off crisis, help organizations follow the straight and narrow, protect consumers, and ensure fair competition, Cameron said. However, they bring an immense burden in learning and costs.

Regulations mean credit unions must look at new compliance software, forms, and training. And all these cost money that would go to the members. "It takes the focus away from service," he said.

The complexity of regulations can create a chilling effect on attracting new board members. "It puts a premium on hiring a senior manager with compliance knowledge" who survives day to day, instead of a visionary, Cameron said.

Credit unions need to create a culture of compliance. “Get the big picture,” he advised. “Understand the effects of laws and the fiduciary duty to comply. Make time for compliance in every board meeting. Make compliance part of the job description and ensure staff are fully trained.”

Chardeen echoed those sentiments: “Compliance is 100% of my job. I have staff, expertise and training, and attend conferences. The credit union board supports this.

“Knowing the credit union understands the importance of compliance means I don't have to sell it,” she continued, although getting staff to follow new regulations is more challenging. “We have compliance requirements for all individuals on staff. Compliance is built into their job descriptions.”

She also noted that the board agenda often covers compliance. "The topics are built in over 12 months so the board's not tackling all the new rules all at once."

Thompson agreed that a best practice is to get in a regular review cycle because examiners want to make sure credit unions are on top of compliance.

She advised credit unions to monitor the National Credit Union Administration's letters to credit unions. The letters indicate what the agency is thinking about, and examiners will often monitor the issues discussed.

Thompson also recommended reviewing annual reports and the "Compliance Matters" section of Credit Union Magazine.

“Boards should ask really great questions,” she said, adding that asking piercing questions shows that board members are on top of compliance issues.

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive