021-14 Wyo. Code R. § 14-9

Current through April 27, 2019

Section 14-9 - Disclosure Required for Brokerage Services and for Insurance and Annuities Sales

(a) Either the bank or the broker on bank premises must provide a complete and accurate disclosure when selling, advertising or marketing any security. A covered agent who makes bank-related sales of insurance must provide a complete and accurate disclosure when selling, advertising or marketing any insurance or annuities. The disclosure shall be designed to ensure that customers of either the bank, the broker, or the covered agent are advised that the security, insurance or annuity:

(i) Is not insured by the FDIC;

(ii) Is not an obligation of the bank;

(iii) Is not guaranteed by the bank; and

(iv) May involve investment risks, including the possible loss of capital or principal.

(b) The disclosure required by subsection (a) shall be made by posting the same in conspicuous places where it may be readily seen by the customers of both the bank and the broker or covered agent.

(c) The disclosure required by subsection (a) shall also be given in writing to each customer

(i) at the time a securities account is opened by the bank or the broker and before any security purchase or sale is executed or

(ii) (including customers who are not bank customers) at the time a bank-related sale of insurance is made by a covered agent and before any such sale is executed.

(iii) A written acknowledgment of receipt of the disclosure statement shall be signed by the customer and retained by the bank, the broker, or the covered agent in the customers account file.

(d) The disclosure statement shall be printed or featured conspicuously in all written or oral sales presentations, advertising and promotional materials used by the bank or the broker in conducting brokerage business on or from bank premises or those premises used by a covered agent. For brokerage services, a prospectus prepared in compliance with requirements of the U.S. Securities and Exchange Commission is not advertising, sales or promotional material within the meaning of this subsection.

(e) Any disclosures regarding particular insurance or annuity products shall identify clearly

(i) the identity of the insurer and

(ii) that the bank is not the insurer.

(f) Advertisement of any insurance guaranty association coverage is prohibited by W.S. 26-42-116.

(g) If applicable, either the bank or the broker conducting the brokerage business shall disclose:

(i) The existence of any advisory or other relationship between the bank or broker and any affiliate involved in providing, underwriting or marketing the security; and

(ii) The existence of any early withdrawal or cancellation penalties, surrender charges or penalties, deferred sales charges, or any cost or expense to which the customer may be subjected as a result of purchasing the security.

(h) If applicable, a covered agent shall disclose:

(i) The existence of any advisory or other relationship between or among the bank, the covered agent, and any affiliate involved in providing or marketing the insurance policy or annuity contract; and

(ii) The existence of any deferred sales charges or other cost or expense to which the customer may be subjected as a result of purchasing the insurance policy or annuity contract.

(i) Shared employees shall clearly and fully disclose the nature of their agency relationship to bank customers so that the customers will know the identity of the insurer.

021-14 Wyo. Code R. § 14-9