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#184804 - 04/28/04 06:09 PM NDIP, Trust, etc. ads
Compliance Maniac Offline
Junior Member
Joined: Jan 2004
Posts: 42
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
Pale Rider Offline
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Posts: 34,318
under the Lone Star
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
KSK Offline
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Joined: Jul 2001
Posts: 357
Kansas
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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#184807 - 05/04/04 02:24 AM Re: NDIP, Trust, etc. ads
Susan T Offline
Member
Joined: Jan 2004
Posts: 97
Washington (State)
They may be referring to the FDIC exam manual Section 9-5, which is about sales of NDIP. Check it out here:

www.fdic.gov/regulations/safety/manual/Section9-5.html
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#184808 - 05/06/04 08:58 PM Re: NDIP, Trust, etc. ads
Compliance Maniac Offline
Junior Member
Joined: Jan 2004
Posts: 42
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
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
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
Red Raiders Offline
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Joined: May 2013
Posts: 1,055
Compliance Land
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
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
Joined: Dec 2013
Posts: 1,387
CA
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
Red Raiders Offline
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Joined: May 2013
Posts: 1,055
Compliance Land
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
ScoutLaRue Offline
Member
Joined: Jul 2016
Posts: 73
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
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
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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#2263015 - 11/30/21 08:12 PM Re: NDIP, Trust, etc. ads Compliance Maniac
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,502
On the Net
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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