Advertising and Marketing: Seminar for Seniors

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Question: 
Our bank, in cooperation with a company called MMM, is putting together a seminar for “over 50” folks called “Pre‑Senior Asset Protection Seminar”. It is completely free to the public, and even states “Nothing will be sold at this seminar”. However, in the “you will learn” section, it mentions the following:

•  How to afford long term care and be treated at home — not a nursing home,

•  The basics about Wills, Trusts, and Powers of Attorney in Texas,

•  Tax savings strategies for withdrawing money from IRA’s, 401K’s, and other pension plans,

•  Why many successful seniors are using new Reverse Mortgage plans, whether or not they need additional income,

•  The Annuity Craze: Pros and Cons.

My question is, since they do mention these products, (annuities, 401k’s, etc) shouldn’t they still use the disclosures, Not a deposit, not FDIC insured, etc.?  Or would that be only if they offer the product (I’m sure business cards will probably be handed out!)

Answer: 
First, here is a link to the OCC Handbook on Retail Non-deposit Sales: http://www.occ.treas.gov/handbook/rnis1.pdf. It doesn’t sound like this activity, however, is covered. Nonetheless, I believe that the bank could have “reputation risk” with regard to the program. Therefore, your notion of including at least some disclaimers seems very prudent....not because you are getting referral fees for selling these products, but because you need to make sure that there is appropriate segregation in the customer’s minds between you and the company.

So, perhaps the brochure should include a disclaimer like:  MMM not affiliated with State National Bank. Products discussed may not be bank deposits or FDIC insured and are not guaranteed by the bank or any government entity.

Please note that I don’t think this is required by the non-deposit (or GLBA rules) but rather is a good risk management action to minimize the potential for “reputation risk”!