N.J. Admin. Code § 3:4-4.6

Current through Register Vol. 56, No. 11, June 3, 2024

Section 3:4-4.6 - Non-depository affiliates

(a) Subject to (b) below, an entity or an employee of an entity located in this State, that is not an insured depository institution affiliated with a foreign bank, may:

1. Offer or distribute information from the foreign bank to a customer;

2. Offer or distribute an application for banking products or services to a customer;

3. Transmit, or receive, or accept for transmittal to the foreign bank a customer's application or application information; and

4. Receive fees from a customer in connection with banking products or services.

(b) An entity, or an employee of an entity as described in (a) above may engage in the activities enumerated in (a) above provided that the conditions set forth below are fulfilled.

1. The foreign bank, with regard to the entity's or employee's activities:

i. Makes the underwriting decision out of State;

ii. Does not have an office in this State;

iii. Does not display signage in this State;

iv. Does not advertise in New Jersey-based media; and

v. Does not receive retail deposits from the customer through the employee or entity. This restriction shall not, however, prohibit the receipt by a foreign bank from such an entity or an employee of such an entity of a transmittal of funds held or controlled by the affiliate in a brokerage account, mutual fund, money market or other non-depository account to a depository account in the foreign bank; and

2. The entity and employee(s) as described in (a) above are licensed in good standing to engage in the activity if a person who is not an employee of a banking institution as defined in 17:9A-1, or an entity that is not such a banking institution, would be required to be licensed by this State to engage in the same activity.

N.J. Admin. Code § 3:4-4.6