What are considered non deposit investment products?
Any product with an investment component that is not an insured deposit is subject to the Interagency Statement. Stocks, bonds, government and municipal securities, mutual funds, annuities (fixed and variable), life insurance policies (whole and variable), and savings bonds are nondeposit investment products.
Who can recommend retail non deposit investment products to customers?
both the institution and the third party. The banking agencies believe that recommending or selling nondeposit investment products to retail customers should occur in a manner that assures that the products are clearly differentiated from insured deposits.
What are the requirements for the sale of retail nondeposit investment products?
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 …
How often is the NDIP policy reviewed?
The scope and level of detail included in your written program should be reflective of your bank’s involvement in offering these products and services. The program should be updated and reviewed by the Board of Directors periodically; we suggest annually.
What is regulation R?
In short, Regulation R allows financial institutions to continue performing certain securities related transactions. without registering as a broker-dealer with the SEC but limits those activities to certain broker exceptions as. defined under Section 3(a)(4)(B) of the Exchange Act.
How does a payable through account work?
The term payable-through account means a correspondent account maintained by a U.S. financial institution for a foreign financial institution by means of which the foreign financial institution permits its customers to engage, either directly or through a subaccount, in banking activities usual in connection with the …
Are credit unions regulated by finra?
[3] The organization is funded by the credit union industry and does not receive federal money. As of 2016, there were approximately 6,000 credit unions with deposits exceeding a trillion dollars. The brokerage industry is regulated by FINRA, the Financial Institution Regulatory Authority.
What is the purpose of Reg GG?
Prohibits any person engaged in the business of betting or wagering (as defined in the Act) from knowingly accepting payments in connection with the participation of another person in unlawful Internet gambling.
Are payable through accounts legal?
PTAs used for illegal purposes can cause banks serious financial losses in criminal and civil fines and penalties, seizure or forfeiture of collateral, and reputation damage.
What are retail sales of nondeposit investment products?
Examination Procedures for Retail Sales of Nondeposit Investment Products Coordination of Specialty Examinations with Full Scope Safety and Soundness Examinations of State Member Banks Interagency Statement on Retail Sales of Nondeposit Investment Products
What does FDIC believe about nondeposit investment products?
Disclosures and Advertising The banking agencies believe that recommending or selling nondeposit investment products to retail customers should occur in a manner that assures that the products are clearly differentiated from insured deposits.
Can a trust department sell nondeposit investment products?
Trust departments cannot, however, make retail sales of nondeposit investment products. Retail sales are not trust department activities, and institutions should not direct retail customers to the trust department for nondeposit investment product sales.
Can a depository institution sell uninsured investment products?
A. No. However, where physical limitations prevent the establishment of distinct areas, depository institutions have a heightened responsibility to ensure that customers understand that the nondeposit investment products are not insured. Kiosk employees also must be appropriately trained before they recommend or sell nondeposit investment products.