WASHINGTON -- The Office of the Comptroller of the Currency will release new rules governing mutual fund sales by banks in the next two weeks.
Comptroller Eugene A. Ludwig, according to an advance copy of a speech to bankers in Colorado Springs, said the OCC will issue guidelines covering such things as what disclosures banks should make to customers, how the banks may name their funds, and what sales training bank employees need.
The policy statement is still being completed, but is likely to be released this week or next.
Mr. Ludwig said in the speech, which was to be delivered Sunday, that he is concerned whether banks are explaining clearly to their customers that deposits in mutual funds are not insured by the Federal Deposit Insurance Corp.
He said banks not explicitly disclosing this fact risk losing the public's trust.
"Bankers bring more than services to the marketplace. They bring their reputations," he said.
Mr. Ludwig, who was to speak to leaders of the American Bankers Association gathered for their summer meeting, said senior management should take a major and active rate in any investment product sales program."
