CUSO Services

NCUA regulation § 712.5, What activities and services are preapproved for CUSOs? lists pre-approved activities and services for CUSOs that are affiliated with FCUs. FCUs may invest in or loan to CUSOs that offer any of the following:

Basic Activities and Services Complex/High-Risk
Activities and Services*
  • Checking and currency services
  • Clerical, professional, and management services
  • CUSO investments in non-CUSO providers
  • Financial counseling services
  • Fixed asset services
  • Insurance brokerage or agency
  • Leasing
  • Real estate brokerage services
  • Securities brokerage services
  • Travel agency services
  • Business loan origination
  • Consumer mortgage loan origination
  • Loan support services
  • Student loan origination
  • Credit card origination
  • Electronic transaction services
  • Record retention, security, and disaster recovery services
  • Payroll processing services
  • Custody, safekeeping, and investment management services for credit unions (including trust and trust related services)
  • Shared credit union branch operations
* CUSOs that provide complex or high-risk services (as defined by regulation) must report additional information through the CUSO Registry. A more thorough list of services for each general area listed above can be found in § 712.5, What activities and services are preapproved for CUSOs?

This list includes all of the pre-approved categories of activities. FCUs may invest in CUSOs that engage in activities and services within these pre-approved categories. However, CUSOs may offer additional services with the permission of the NCUA Board. A CUSO that intends to offer a service that is not pre-approved should first seek an advisory opinion from the NCUA’s Office of General Counsel.

A FCU that wants to invest in or loan to a CUSO that offers a service that is not pre-approved may also request an advisory opinion from OGC through its NCUA regional office. OGC will determine if the activity is included in one of the pre-approved categories or if NCUA Board approval is necessary to approve the service.

In accordance with NCUA regulation § 712.6, What activities and services are prohibited for CUSOs?, CUSOs that FCUs invest in or loan to are prohibited from acquiring control of another depositor institution, or investing in the stocks, shares, or obligations of an insurance company, trade association, liquidity facility or similar entity.

FISCUs may be permitted to invest in, provide loans to, or conduct business with CUSOs that are engaged in activities or services not listed above, in accordance with applicable state law.

Last updated August 9, 2018