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Inactive Financial Institution Letters
The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision (the agencies) have jointly proposed the attached consumer protection regulation concerning retail sales practices of insurance products by a depository institution. The proposed rule would implement Section 305 of the Gramm-Leach-Bliley Act. Comments on the proposal are due by October 5, 2000.
Scope of the Proposed Rule
Section 305 of the Gramm-Leach-Bliley Act requires the agencies to jointly prescribe consumer protection regulations that apply to retail sales practices, solicitations, advertising, or offers of insurance and annuity products. The proposal addresses sales activities conducted by a depository institution or by any person at an office of the institution, and extends to sales activities conducted on behalf of the institution in which:
Under the proposed rule, a depository institution is required to make disclosures in connection with the sale of an insurance or annuity product both orally and in writing. A written acknowledgment must be obtained from the consumer that the disclosures were received. The proposed rule allows for the electronic distribution of disclosures and delivery of acknowledgments, provided certain conditions are met.
The disclosures that depository institutions are required to make under the proposed rule are:
The proposed rule also establishes other requirements, including the following:
Under the proposed rule, any consumer who believes that a depository institution or any other person working on behalf of the institution has violated the requirements set forth in this proposal should contact the FDIC's Division of Compliance and Consumer Affairs. The other banking and thrift agencies will refer complaints to similar offices within their organizations.
For more information, please contact Keith A. Ligon (202-898-3618) in the FDIC's Division of Supervision or Michael B. Phillips (202-898-3581) in the FDIC's Legal Division.
Attachment: Federal Register, August 21, 2000, pages 50882-50902
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).
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