New Rules under Gramm-Leach-Bliley Act
On August 21, 2000, the federal banking regulators (Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of Thrift Supervision) released proposed regulations implementing consumer protection provisions of the Gramm-Leach-Bliley Act when insurance products and annuities are sold by or at a depository institution. 65 Fed. Reg. 50882 (Aug. 21, 2000).
As required by the Act, the regulations focus primarily on prohibiting the tying of credit to the purchase of bank-affiliated insurance, disclosure of the uninsured nature of insurance products and annuities, and separating insurance and annuities sales from the deposit-taking area.
Comments are due by October 5, 2000, and the regulators are statutorily required to finalize the regulations by November 11, 2000.
Federal Register documents are available online at http://www.access.gpo.gov/su_docs/aces/aces140.html
Copyright 2000, John M. Baker, Esq., Stradley, Ronon, Stevens & Young, LLP, 1220 19th Street, N.W., Suite 700, Washington, DC 20036 – (202) 822-9611- Fax (202) 822-0140 This article was originally posted to the FundLaw List, http://www.egroups.com/group/fundlaw. To subscribe to FundLaw, send a blank e-mail to firstname.lastname@example.org