Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 205 - DENIAL, SUSPENSION, OR REVOCATION OF LICENSE › Section 441-205-0135 - Sales of Securities or Investment Advisory Services at Financial Institutions or Trust Companies

Current through Register Vol. 63, No. 7, July 1, 2024
(1) This rule
			 applies exclusively to securities sales activity conducted by a broker-dealer
			 or salesperson, and to investment advisory services conducted by an investment
			 adviser or investment adviser representative, on the premises of a financial
			 institution or trust company as defined in ORS
			 706.008 and the premises of any
			 Oregon-based service corporation of a financial institution or trust company.
			 This rule does not alter or eliminate the obligations of a securities licensee
			 to comply with all other securities laws and rules.
(2) A broker-dealer, salesperson, investment
			 adviser or investment adviser representative shall not conduct securities sales
			 or advisory activities on the premises of a financial institution or trust
			 company unless the licensee complies initially and continuously with the
			 following requirements:
(a) The activities
			 shall be conducted, wherever practical, in a physical location distinct from
			 the areas where the financial institution's or trust company's activities are
			 conducted;
(b) The securities sales
			 or advisory activities shall be identified in a manner that is clearly
			 distinguished from the financial institution's or trust company's activities,
			 including clearly displaying the name of the licensed firm conducting the
			 securities activities;
(c)
			 Contractual or other arrangements between the financial institution or trust
			 company and licensee must be governed by a written agreement that sets forth:
(A) The responsibilities of the
			 parties;
(B) The compensation
			 arrangements;
(C) That a qualified
			 securities supervisor will properly supervise the activities of the salesperson
			 or investment adviser representative; and
(D) A requirement that securities regulators
			 be permitted access during normal business hours to the area of the premises
			 where securities sales or advisory activities are conducted and records are
			 kept for purposes of routine or for-cause examinations or investigations of the
			 securities sales or advisory activities;
(d) At or before a salesperson or investment
			 adviser representative opens a customer account, the licensee shall:
(A) Disclose, both orally and in writing,
			 that the securities products or services offered:
(i) Are not insured by the Federal Deposit
			 Insurance Corporation (FDIC) or National Credit Union Association (NCUA), as
			 applicable;
(ii) Are not deposits
			 or other obligations of the financial institution or trust company;
(iii) Are not guaranteed by the financial
			 institution or trust company; and
(iv) Are subject to investment risks,
			 including possible loss of any principal that is invested;
(B) Obtain a written acknowledgment of
			 receipt of the disclosures required by paragraph (2)(d)(A) of this rule from
			 each customer during the account opening process; and
(C) Provide clear and accurate explanations
			 of coverage including a clear and accurate description of any guarantee
			 provided with the insurance, if making any written or oral representations
			 concerning insurance coverage other than FDIC or NCUA insurance;
(e) All confirmations
			 and account statements provided to customers must clearly indicate that the
			 services are provided by the broker-dealer or investment adviser, as
			 applicable;
(f) Except as permitted
			 in subsections (2)(g) and (2)(h) of this rule, the disclosures described in
			 paragraph (2)(d)(A) of this rule must be incorporated into:
(A) Advertisements and sales literature that
			 announce the location of a financial institution where broker-dealer or
			 investment advisory services are provided;
(B) Advertisements and sales literature
			 distributed by or for the regulated person on the premises of a financial
			 institution or trust company; and
(C) Correspondence, including electronic
			 mail, with a current or potential customer;
(g) A broker-dealer or investment adviser may
			 use the following shorter logo format disclosures in advertisements, sales
			 literature, and written communications, including material published or
			 designed for use in radio or television broadcasts, ATM screens, billboards,
			 signs, posters and brochures, provided that the applicable disclosures are
			 displayed in a conspicuous manner:
(A) Not
			 FDIC or NCUA Insured;
(B) No Bank
			 or Credit Union Guarantee;
(C) May
			 Lose Value;
(h) As long
			 as the omission of the disclosures required by paragraph (2)(d)(A) of this rule
			 would not cause the advertisement or sales literature to be misleading in light
			 of the context in which the material is presented, the broker-dealer or
			 investment adviser is not required to provide disclosures for the following:
(A) Radio broadcasts of 30 seconds or
			 less;
(B) Electronic billboard-type
			 time and temperature, or ticker tape signs; and
(C) Signs such as banners and posters when
			 used only as location indicators;
(i) Recommendations by a regulated person
			 concerning nondeposit investment products with a name similar to that of a
			 financial institution or trust company may occur only pursuant to policies and
			 procedures reasonably designed to minimize risk of customer
			 confusion.