Requirements of the Interagency Statement on Retail Sales of Nondeposit Investments

B

The Interagency Statement on Retail Sales of Nondeposit Investments (the Statement) is a regulatory guidance document that outlines the expectations of federal banking agencies regarding the sale of nondeposit investment products by banks and their employees. The Statement is designed to ensure that banks and their employees provide customers with appropriate information and advice when selling nondeposit investment products.

To answer the question, we need to identify the requirement that is NOT included in the Statement. Here is a breakdown of each answer choice:

A. That employees selling nondeposit investments receive special training on the products they sell This requirement is included in the Statement. The Statement states that banks should provide employees with "adequate training" on the nondeposit investment products they sell.

B. That all bank employees receive special training on the nondeposit investment products sold by the bank This requirement is NOT included in the Statement. The Statement focuses on the training of employees who sell nondeposit investment products, not all bank employees.

C. That employees selling nondeposit investments ensure that the product is suitable to the customer purchasing it This requirement is included in the Statement. The Statement states that banks should ensure that the nondeposit investment products they sell are suitable for the customer's needs, based on factors such as the customer's investment objectives, financial situation, and risk tolerance.

D. That the history of employees selling nondeposit investments be checked before their employment This requirement is NOT included in the Statement. The Statement does not address pre-employment checks on employees selling nondeposit investment products.

Therefore, the answer to the question is B - That all bank employees receive special training on the nondeposit investment products sold by the bank.