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Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
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Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Securities Safekeeping

97-1125 / December 1997

Securities Safekeeping

Subject

Investments

Historic Status

Non-historic

Terry Robertson, CPA, Senior Vice President
Fixed Income Research
Thomas A. Snyder, Managing Director
Fixed Income Compliance
Morgan Keegan & Co., Inc.
50 Front Street
Memphis, TN 38103

Re: Securities Safekeeping
Your letter of November 10, 1997

Dear Messrs. Robertson and Snyder:

You have asked whether Morgan Keegan may continue to safekeep securities for federal credit unions (FCUs) under Section 703.60 of the revised rules governing investment and deposit activities issued by the National Credit Union Administration (NCUA) Board in June 1997. 62 Fed. Reg. 32989 (1997). It may under an interim final rule issued by the NCUA Board on November 24, 1997, which further amended Section 703.60. 62 Fed. Reg. 64146 (1997).

The interim final rule replaced the prohibition against a selling broker-dealer acting as a safekeeper with the requirement, "Any safekeeper you [an FCU] use must be regulated or supervised by either the Securities and Exchange Commission or a federal or state depository institution regulatory agency." Since Morgan Keegan is regulated by the Securities and Exchange Commission, it may safekeep securities for FCUs.

Sincerely,

/s/

Sheila A. Albin
Associate General Counsel

GC/LH:bhs
SSIC 4660
97-1125

Last modified on

11/14/24