NCUA Gives RIA Nod for Private Consumer Debt Fund Pilot

The US National Credit Union Administration (NCUA) approved ALM First Financial Advisors' request to pilot a private consumer debt fund investments program.

Under the scheme, up to 30 complex federal credit unions in the country will be allowed to invest in opportunities prohibited under NCUA rules but accepted under the Federal Credit Union Act. Participating credit unions will gain access to a series of non-registered investment funds composed of consumer loans through the pilot program. The pilot scheme is subject to a specific set of requirements and conditions, which the NCUA outlined in a December 30, 2024, news release.

Dallas-based ALM First Financial, which proposed the program, provides financial advisory services to banks and credit unions. It is a SEC-registered investment advisor that managed $70B of assets as of the close of the third quarter of 2024.