Two years later, The Financial Oversight and Management Board for Puerto Rico reported little to no progress in reforming the Public Corporation for the Supervision & Insurance of Cooperatives in Puerto Rico (COSSEC).
COSSEC is responsible for overseeing and insuring the island's credit unions or cooperatives.
On August 4, 2017, The Financial Oversight and Management Board had certified the Fiscal Plan for COSSEC. On August 19, 2018, COSSEC issued its revised Fiscal Plan for COSSEC, which was never certified by The Financial Oversight and Management Board.
The Financial Oversight and Management Board wrote in its Fiscal Year 2019 Annual Report that "there is a need for COSSEC to have stronger and independent governance in order to to exercise its role as a regulator and insurer."
Reforms would also include adopting regulatory and accounting reporting standards and capital levels more consistent with to that of Federal regulators.
Without meaningful reforms, federally-insured credit unions could face potential reputation risk from bad headlines about COSSEC.
Go here to read the Annual Report.
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