ARLINGTON, Va. – NASCUS is urging the Securities and Exchange Commission to amend its "Interim Final Rule, 12 CFR Parts 200 and 240, Definition of Terms in and Specific Exemptions for Banks, Savings Associations, and Savings Banks Under Sections 3(a)(4) and 3(a)(5) of the Securities and Exchange Act of 1934″ and exempt state-chartered credit unions from the Commission regulation just as it has done with savings and loans and savings banks. Under the SEC rule, common credit union transactions such as sweep accounts and trustee functions could trigger "broker" or "dealer" Securities Exchange rules and subject the state credit union to registration and regulation of these functions. The SEC exempted banks and thrifts from these rules because it recognized these functions have become standard financial services, and it recognized banks and thrift regulators have the requisite expertise to oversee these types of activities. "NASCUS believes that the Commission should amend the interim rules to extend an exemption to state credit unions to the same extent the Commission exempted other `banks' in a manner which is in keeping with the intent of Gramm-Leach-Bliley Act," wrote NASCUS President/CEO Doug Duerr to the Commission. "Our concern is that, unless state chartered credit unions are afforded the same SEC treatment as commercial banks and savings institutions, the power granted credit unions by state legislatures and by state regulators will be unnecessarily preempted by SEC regulation or the rule will trigger redundant and costly examination and oversight," Duerr stated. In a separate communication, NASCUS will ask to arrange a meeting at the earliest opportunity between NASCUS regulators and appropriate SEC staff to discuss NASCUS' exemption proposal and other issues that have been raised by some federal banking regulators.