Regulatory Alerts2012-03-22
Benefits to Customers' Employees
The Supervisor of Banks issued regulations governing arrangements where banking corporations provide preferred services to the employees of their corporate customers. These arrangements must be anchored in clear management procedures and supported by detailed written agreements signed by authorized representatives of both parties. The regulation mandates that benefits be granted strictly according to the agreement and prohibits undisclosed benefits to employees who could influence the bank's relationship with the customer.
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