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7/26/24, 1:23 PM FRB: Press Release -- Joint request for comment on requirements for bank employees selling securities -- January 9, 1997 Release Date: January 9, 1997 For immediate release The Federal Reserve Board, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (banking agencies), today requested comment on proposed regulations regarding qualification requirements for bank employees who sell mutual funds and certain other securities. Comment is requested by February 28, 1997. The principal provisions of the proposed regulations would require: banks to sponsor their employees to take the appropriate professional qualification test to become bank securities representatives; bank employees to pass the appropriate professional qualification test as a condition to selling covered products to retail customers; bank employees to register with the banking agencies by providing personal history, employment, and disciplinary information that would eventually be made available to the public; supervisors of bank securities representatives to pass the appropriate professional qualification test and register as a bank securities representative; and bank securities representatives to participate in continuing education programs that incorporate the requirements applicable to the securities industry. The proposed regulations would promote the safe and sound operation of bank retail securities sales programs and customer protection by establishing standardized qualification requirements for bank personnel engaged in the retail sale of certain securities. The interagency notice is attached. Summary only | Summary and proposed rule (135 KB PDF) 1997 Banking and consumer regulatory policy Home | News and events Accessibility Last update: January 14, 1997 2:00 PM https://www.federalreserve.gov/boarddocs/press/boardacts/1997/19970109/ 1/1