Financial Services Alert

The federal banking agencies issued a proposed rule (the "Proposed Rule") setting forth consumer protection requirements applicable to retail sales, solicitations, advertisements or offers of insurance products by depository institutions. If adopted, the Proposed Rule would apply to such activities conducted by any person at an office or on behalf of a depository institution, including sales activities on a depository institution’s web site. However, the Proposed Rule would not apply to activities conducted by affiliates or even subsidiaries of depository institutions unless conducted at a branch or on behalf of the depository institution. The Proposed Rule would establish presumptions to determine whether a sale or solicitation is conducted on behalf of a depository institution. These include: (1) statements that the offer is made on behalf of the institution, (2) payment of commissions or fees to the