What are considered non deposit investment products?

What are considered non deposit investment products?

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. Savings bonds are included because they are not insured.

What is an example of Rndip?

RNDIP is defined as “any product with an investment component that, in most instances, is not an FDIC-insured deposit” and includes mutual funds, exchange-traded funds, annuities, equities, and fixed-income securities (Booklet, p. 4).

Who can recommend retail nondeposit investment products to customers?

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 Ndips?

Nondeposit Investment Products—Overview. Objective. NDIP include a wide array of investment products (e.g., securities, bonds, and fixed or variable annuities). Sales programs may also include cash management sweep accounts to retail and commercial clients; these programs are offered by the bank directly.

What is non deposit account?

Unlike the traditional checking or savings account, however, these nondeposit investment products are not insured by the FDIC. Non-Deposit Investment Products. These products may be offered to you in the financial institution’s lobby, through the mail or over the phone or through the Internet.

What does NDIP stand for in banking?

NDIP – Nondeposit Investment Products Refresher – Wipfli.

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.

Who must comply with Gramm Leach?

The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.

What are four types of non depository financial institutions?

Nondepository institutions include insurance companies, pension funds, securities firms, government-sponsored enterprises, and finance companies.

Who can make recommendations about nondeposit investment products?

This Statement applies when retail recommendations or sales of nondeposit investment products are made by: • employees of the depository institution;

What is the interagency statement for nondeposit investment products?

The Interagency Statement requires that an institution’s board of directors adopt written policies and procedures and implement general guidelines before initiating a nondeposit investment product sales program.

Can a trust department make retail sales of 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 trust department recommend nondeposit investment products to fiduciary accounts?

A. Yes and no. Trust departments recommend, buy and sell nondeposit investment products for trust customers. The Interagency Statement does not cover recommendations and sales of nondeposit investment products to “fiduciary accounts.” Trust departments cannot, however, make retail sales of nondeposit investment products.