We are wanting to place a radio ad but are questioning what disclosures are required for a non-insured investment product? Does it make a difference if it is a 30 second or 60 second ad? Can you give me where it is sited?

Thank you all very much for any advice which can be offered.

I have a checklist form that I use that refers to the applicable regulation since all do not apply in radio advertising.

It appears you will have to state the institution is a member of the FDIC (12 CFR 328.3)

It also appears if you state the APY, you may need to state the min. balance to receive the APY if applicable (12 CFR 230.8 (c)(3)

If the ad is for certificate of deposit, some other rules may apply.

Hope this helps.

Opinions are mine not my employer

Maybe I should clarify non-insured investment products: ie- mutual funds, stocks, bonds, annuities, etc. What you refered me to looks like Reg. DD/Truth in Savings for Insured Deposit products. Are you saying this also applies to Non-insured investment products?

Thanks for clarifying......

Brenda,

In advertising NDIP's it is inappropriate to include the member FDIC, and EHL logo. Take a look at the NASD Conduct Rule 2210, and see if that provides some guidance for you.

You can reach the internet version of the manual at:
www.nasdr.com

Hope this helps

Brenda,
Try the interagency statement on retail sales of non-deposit investment products.

http://www.fdic.gov/regulations/laws/rules/5000-4500.html#5000interagencysor

Thank you to both Karen and elcinoca for the two references. What I am getting from each is that we have to say the products are:
1. Not FDIC insured
2. Not deposits of the bank, nor guaranteed by the bank
3. Subject to investment risks, including loss of principal

However, I could not find where it gives the definition of what makes a radio ad. Does anyone know if there is a specific amount of time that makes a radio spot an advertisement? For example, are spots less than 30 seconds considered an Ad? What if it is 31 seconds, 32 seconds, 33 seconds, etc? What is the cut off point that makes it become an Ad?

Thanks again for any help given!

Brenda, an advertisement is any commercial message promoting a product. The length of the radio advertisement does not change the regulatory requirements governing what you must disclose.

Brenda,

Try the FDIC's Financial Institution Letter at
www.fdic.gov/news/news/financial/1995/fil9561.html

It states, in pertinent part,

"The Interagency Statement disclosures do not need to be provided in the following situations:

-radio broadcasts of 30 seconds or less;
-electronic signs; and
-signs, such as banners and posters, when used only as location indicators"

Just a note to raise the question of why you would run a 30 second radio spot. Usually stations charge a premium for this length verses the usual 60 sec. spot. You might want to check your station sales rep, if you can get an honest answer.