Use all tools at your disposal

Who's responsible for compliance at your credit union? Are you paying them enough? And are they taking advantage of all available resources?

At small credit unions, the compliance function often comes under the manager's "other duties as assigned" heading. In simple truth, there's no one else on hand to do it.

At larger credit unions, compliance falls to a full-time compliance officer, one whose job is to review and maintain compliance laws and regulations to make sure your credit union complies with federal and state laws. They periodically conduct audits and present findings to management. They also suggest policy changes to reduce noncompliance risks.

Full-time compliance officers are commanding pay commensurate with their ever-expanding responsibilities. The average salary for full-time compliance officers is $32,249 at smaller credit unions ($50 million to $100 million in assets) and $48,629 at larger credit unions (more than $600 million in assets), according to Credit Union Magazine's new 1999 Complete Staff Salary Survey Report. Smaller credit unions choosing to reward these individuals more handsomely-those in the 90th percentile-pay an average salary of $39,700; larger, top-percentile credit unions pay an average $65,236.

Aside from the issues of pay and asset size, the need for compliance help is ongoing. It's critical. And it's getting more demanding all the time.

This year alone, a compliance officer will deal with new field-of-membership rules, new member business-loan rules, and regulations related to insurance fund premiums, risk-based capital, and prompt corrective action.

No wonder CUNA & Affiliates and your state league produced the supplement, "Helping You Solve the Compliance Puzzle" that came with this issue. Leagues offer front-line compliance support for your credit union. CUNA, too, has staffed up its compliance support for leagues and credit unions.

One of the many ways CUNA has improved its compliance service to you is through this magazine. In 1997, we began offering a new compliance update section on a monthly basis. In 1998, we introduced Compliance Matters-a quarterly eight-page section. This year, we began publishing Compliance Matters six times a year, and it will soon be published monthly. Plus, we're sending this magazine to all affiliated credit unions to make sure they receive this essential compliance information.

But all these efforts go for naught if you don't know about and use all these resources. Keep the Compliance Puzzle supplement handy. Go to CUNA's Web pages for daily updates. And keep reading the compliance information in this magazine.

-James A. Hanson, editorial director

Copyright Credit Union National Association, Inc. Jun 1999
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