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#544996 - 05/09/06 01:00 PM Licensed Bank Employees
JW Offline
Gold Star
Joined: Nov 2005
Posts: 269
We are looking at having our new accounts reps get licensed to sell investment products and insurance. Can someone help me by giving me a starting point with what I need to consider from a compliance standpoint?

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General Discussion
#544997 - 05/09/06 09:01 PM Re: Licensed Bank Employees
FraudBuster Offline
100 Club
Joined: Nov 2005
Posts: 198
This isn't really my area, so take it with a grain of salt, but I thought you couldn't mix personnel for deposit and nondeposit products, because of the danger of confusing customers about FDIC insurance. If I'm right, licensing doesn't come into it; the same person cannot do both.
Opinions expressed do not necessarily reflect those of my employer or of my cats.

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#544998 - 05/09/06 09:03 PM Re: Licensed Bank Employees
kw@fnb Offline
100 Club
Joined: Jul 2004
Posts: 135
Beatrice, NE
Non-deposit sales must be kept separate. They even must be physically separated from FDIC insured products. Brochures are not even supposed to be next to each other.

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#544999 - 05/10/06 11:09 AM Re: Licensed Bank Employees
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 79,281
Galveston, TX
The opinions expressed here should not be construed to be those of my employer:

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#545000 - 05/10/06 04:09 PM Re: Licensed Bank Employees
RBanker Offline
Power Poster
Joined: Jul 2003
Posts: 2,675
Austin Texas
Your state may have input on this as well.

In Texas, as a Banking Center Manager - who did new accounts and loans, I was also licensed (Series 7) for insurance sales, which allowed me to sell fized annuities.
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

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#545001 - 05/10/06 08:36 PM Re: Licensed Bank Employees
New to Compliance Offline
Joined: Apr 2006
Posts: 59
Tucson, AZ
At a former institution I worked for, we sold investments and were licensed plus with sold the normal products that the institution had from the same desk. While we were discussing investments that were not insured, we had to place a sign on our desk stating the normal, no guarantee, not insured, may lose value and remove our NCUA sign. Then when we were no longer speaking about investments, we would remove one sign and put up the NCUA sign. It worked pretty well.

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