Just thought I would try and get some input on this:

We have a joint agreement with an insurance company to sell annuities in our branches. They want to run an ad that offers a free gift to any customer who meets with a representative. This gift is not contingent on them purchasing anything.

I find nothing in the interagency statement on sales of these products that would prohibit us from doing this, and I find no dollar amount limit for the gift (although, we intend to keep it under $10). Since these aren't bank products, is there anything that limits the amount and/or is there anything that would trigger more disclosures (other than the non-FDIC insured, etc. etc.)?

Customers will also get an entry into a drawing for meeting with a representative. Again, it's not contingent on them purchasing anything. I see nothing wrong with this either (although I haven't fully researched state law on this yet).

The last issue is in regards to employee compensation for a referral. Our employees receive a $7 fee for each referral. Our marketing department wants to also enter them into a drawing each time they make a referral under this promotion. The winner of the drawing would get a prize. I say that's a violation since an employee may get more than a one time nominal fee for a referral.

We are not doing NDIPs any longer, but I agree with you. While the banking side won't prohibit these things, look at any state and SEC rules which may apply.

As to the compensation to employees, again I agree. The Policy Statement says "2010.6.1.3.5 Compensation, Depository institution employees, including tellers, may receive a one-time nominal fee of a fixed dollar amount for each customer referral for nondeposit investment products. The payment of this referral fee should not depend on whether the referral results in a transaction."

I don't know if there are any interpretations on that, but I would be hesitant.