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#184804 - 04/28/04 06:09 PM
NDIP, Trust, etc. ads
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Junior Member
Joined: Jan 2004
Posts: 42
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If you have an ad which is listing NDIP products only which are offered through an investment broker, other than the "non-fdic insured, etc." disclosures, don't you need to have some type of disclosure indicating who the products are offered through? I am being told by a bank employee who in this division (not the broker), that Reg.9 states that we do NOT; however, I don't have a clue as to what "Reg. 9" is about. I have looked at ads from other banks who indeed have this type of disclosure and know that we have had to have it in the past on other types of advertisements.
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#184805 - 04/28/04 06:12 PM
Re: NDIP, Trust, etc. ads
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10K Club
Joined: Aug 2002
Posts: 34,318
under the Lone Star
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I am not sure what No. 9 is either, but we addressed this question by having the investment company pay for and design the ad. Then the ad simply stated that the products were available at XYZ Bank.
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#184806 - 05/03/04 04:46 PM
Re: NDIP, Trust, etc. ads
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Gold Star
Joined: Jul 2001
Posts: 357
Kansas
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The Reg 9 he/she is probably referring to is 12 CFR 9. It is the OCC's regulations for banks that have trust charters.
Additionally, he/she is correct. Reg 9 does not address any advertising or disclosure requirements, except that if you dig into some of the opinions that support the regulations, you can not advertise common trust funds. That being in part because they are not a registered security in the eyes of the SEC.
As for advertising trust products however, I follow a few common sense rules. I my case, our trust division is part of the bank itself. Not a separate subsidiary, just a division of the bank. I generally recommend that advertising NOT include the FDIC and EHL logo. Depending on the individual piece - if it speaks to various investment options available through the trust division to satisfy the investment goal(s) of the grantor(s), I will ask that the Not-Not-May disclosure be added.
If you are looking for something more specific, send me a PM and I will try to give you my two cents.
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#184808 - 05/06/04 08:58 PM
Re: NDIP, Trust, etc. ads
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Junior Member
Joined: Jan 2004
Posts: 42
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Okay, I've reviewed the site above; specifically, the advertising sections. I do not see where my question is addressed. The same as "Mush" above, our trust department is just that, a department of the bank, offering trusts and NDIP products, the latter of which is offered through a registered broker. I have asked our regulator this question, duh, with no response. (No disrespect to regulators intended.) I'm in control of the MMN disclosures and no FDIC logo indicated, I'm just not sure why we do not have to put who the products are offered through one some ads and do on others - whether it's paper or i.e., website.
Marketing and compliance - what a joy!
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#184809 - 05/06/04 10:23 PM
Re: NDIP, Trust, etc. ads
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10K Club
Joined: Jul 2001
Posts: 83,227
Galveston, TX
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My first question would be to find out if the broker/dealer has approved all advertisements?? The NASD Conduct Rules require that each item of advertising and sales literature be approved by signature or initial, prior to use, by a registered principal of the member. I find it hard to believe that the broker/dealer would approve any type of advertisement that did not clearly identify them separately from the bank.
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#2143206 - 08/23/17 02:10 PM
Re: NDIP, Trust, etc. ads
Compliance Maniac
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Diamond Poster
Joined: May 2013
Posts: 1,069
Compliance Land
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This may be a silly question but is a bank that has a Trust Dept that offers trust and investment management services subject to NDIP guidance?
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#2143226 - 08/23/17 02:56 PM
Re: NDIP, Trust, etc. ads
Compliance Maniac
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Diamond Poster
Joined: Dec 2013
Posts: 1,399
CA
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Yes.
Interagency Statement on Sales of Retail Non-Deposit Investment Products
Nondeposit investment products are to be advertised with the statement disclosing, as applicable, that the products are “Not a deposit; not FDIC insured; not guaranteed by any federal government agency; not guaranteed by the bank; and may go down in value.†In addition, nondeposit investment products are to be segregated within advertisements when advertised with other bank products as not to confuse consumers as to which products are FDIC insured and which are not.
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#2143283 - 08/23/17 05:10 PM
Re: NDIP, Trust, etc. ads
Compliance Maniac
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Diamond Poster
Joined: May 2013
Posts: 1,069
Compliance Land
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Would a radio ad that says something like "come see us for trust and wealth management services. We're great!" require the NOT, NOT, MAY disclosure even though we aren't talking about any specific product?
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#2263009 - 11/30/21 07:26 PM
Re: NDIP, Trust, etc. ads
Red Raiders
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Member
Joined: Jul 2016
Posts: 73
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I am wondering the same thing about not mentioning the products specifically, just ":visit our Wealth Management Branch!"
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#2263014 - 11/30/21 08:01 PM
Re: NDIP, Trust, etc. ads
Compliance Maniac
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10K Club
Joined: Jul 2001
Posts: 83,227
Galveston, TX
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If you are indirectly advertising non-FDIC insured products whether mentioning a specific product name or not, I believe that you trigger the NDIP disclosures.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2263015 - 11/30/21 08:12 PM
Re: NDIP, Trust, etc. ads
Compliance Maniac
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10K Club
Joined: Oct 2000
Posts: 27,748
On the Net
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Ask yourself what products/services doe the Wealth Mgmt Branch offer?
So if you are referring a customer there who is searching on a bank IRA product, what disclosure would be needed?
End arounds are typically not a good strategy.
I recall a banker getting grilled because the location of its version of your WMB was on a page with bank branch locations and it had a header or footer of general info, including "Member FDIC." The examiner saw that as a mixed message.
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