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#2187777 - 08/02/18 04:03 PM Advertising Insurance and Investment Offices
Happy Offline
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Happy
Joined: Jan 2002
Posts: 282
Does a bank need to include the Not Not Not May on an Ad that only puts the name of the Insurance branch and the name of the Investment branch in the Ad. The Ad does not list any products or services. I know we need "Member FDIC" Since it will be out there for a length of time I'd like someone to reassure me that they aren't needed :-)
I always told marketing that the disclosures are needed and that they need to be segregated. What is the definition of "general nature"?

From the insurance rules 343.40(d):
d) Advertisements and other promotional material for insurance products or annuities. The disclosures described in paragraph (a) of this section are required in advertisements and promotional material for insurance products or annuities ]unless ]the advertisements and promotional materials are of a general nature describing or listing the services or products offered by the institution.
AND
From the NDIP rules for investments:
Advertisements and Other Promotional Material. Advertisements and other promotional and sales material, written or otherwise, about nondeposit investment products sold to retail customers should conspicuously include at least the minimum disclosures discussed above and must not suggest or convey any inaccurate or misleading impression about the nature of the product or its lack of FDIC insurance. The minimum disclosures should also be emphasized in telemarketing contacts. Any third party advertising or promotional material should clearly identify the company selling the nondeposit investment product and should not suggest that the depository institution is the seller. If brochures, signs, or other written material contain information about both FDIC-insured deposits and nondeposit investment products, these materials should clearly segregate information about nondeposit investment products from the information about deposits.

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#2187784 - 08/02/18 04:18 PM Re: Advertising Insurance and Investment Offices Happy
rlcarey Online
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rlcarey
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Posts: 83,227
Galveston, TX
I don't understand - what are you advertising? You mean you are just going to print the names of two branches in an ad by themselves??
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2187843 - 08/02/18 06:50 PM Re: Advertising Insurance and Investment Offices rlcarey
Happy Offline
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Happy
Joined: Jan 2002
Posts: 282
Sorry if it wasn't clear. The Ad would list - the bank name/the insurance company name/the investment department. This is in a banner format. They are all our affiliates under one umbrella company. We have done this Ad before and I have always said we need the appropriate disclosures under the each name. Now I am being asked by marketing if it is required.

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#2187929 - 08/03/18 02:04 PM Re: Advertising Insurance and Investment Offices Happy
Happy Offline
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Happy
Joined: Jan 2002
Posts: 282
Anyone have an opinion on this?

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#2187952 - 08/03/18 03:15 PM Re: Advertising Insurance and Investment Offices Happy
Skittles Online
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Skittles
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TN
Happy - if you don't have it segregated then how would consumers understand that the insurance company and investment company products are not FDIC insured? It has to be clear and conspicuous - and without seeing the banner it's tough to determine if it meets that guideline.
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#2187954 - 08/03/18 03:18 PM Re: Advertising Insurance and Investment Offices Happy
Adam Witmer Offline
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(4) Mixed advertisements. In advertisements containing information about both insured deposit products and non-deposit products or hybrid products, an insured depository institution shall clearly segregate the official advertising statement or any similar statement from that portion of the advertisement that relates to the non-deposit products.
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All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2188031 - 08/03/18 08:32 PM Re: Advertising Insurance and Investment Offices Happy
Happy Offline
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Happy
Joined: Jan 2002
Posts: 282
My question wasn't about the segregation. I know that they need to be segregated. I also know that the "member FDIC" needs to be under the bank's name.
My question was about the disclosures and if they are needed under the Insurance & Investment names.
Example:
Always Insurance / Always Investment / Always Bank
NotNotNotMay / Not FDIC No bank guarantee May lose value / Member FDIC

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#2188354 - 08/08/18 02:47 AM Re: Advertising Insurance and Investment Offices Happy
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,658
As you already know, Happy, the main guidance for this is the FDIC membership rules and NDIP rules which both say to clearly segregate, but don't give further direction. As Skittles pointed out, it would seem to me that the "Always Insurance/Always Investment/Always Bank" doesn't clearly explain to consumers which products are FDIC insured and in my opinion, having the Not Not May right next to the Member FDIC is confusing - at best. Without seeing the full ad (which isn't possible on these forums), it is hard to give further direction or opinions. If your marketing team insists on this approach, you may want to contact your primary regulator to get their blessing in advance of the ad (though their "blessing" doesn't guarantee that others won't later disagree).

Hope that helps and best of luck working with your Marketing team.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2188916 - 08/13/18 06:51 PM Re: Advertising Insurance and Investment Offices Happy
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
If you're not promoting any specific insurance products, you do not need the "not/not/not/may" disclosure.

Advertisements and promotional material of insurance products or annuities require the insurance disclosures unless they are of a general nature (listing of services) [§343.40(d)].
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David Dickinson
http://www.bankerscompliance.com

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