Regulatory Alerts2012-03-22
Prohibition on Marketing Credit for Financial Asset Purchases
The Supervisor of Banks issued regulations to address conflicts of interest and customer protection risks associated with marketing financial assets through credit. The rule explicitly prohibits banking corporations from initiating contact with customers via any marketing or advertising campaign to encourage the purchase of financial assets using credit. This ban encompasses all forms of promotional outreach, including branch-level campaigns, circulars, and verbal guidelines issued by management.
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