N.M. Code R. § 12.15.1.10

Current through Register Vol. 35, No. 11, June 11, 2024

Section 12.15.1.10 - LENDING INSTITUTION RESPONSIBILITY

The lending institution has on-going responsibility to ensure that the annuities sales program is in compliance with the provisions of this regulation and is consistent with the institution's strategies and objectives.

A. The lending institution shall establish a policy addressing the management of the sale of annuities. Such policy must contain provisions to ensure compliance with the limitations and restrictions enumerated in this regulation. The compliance function should be independent of the operating sales program and report directly to the lending institution's board of directors or a designated committee thereof. The policy shall specifically prohibit the lending institution from selling or providing to any person other than a third party provider the name of an individual that has purchased annuities through that lending institution without the customer's prior acknowledgment and written consent.

B. The lending institution shall formulate, prior to engaging directly in the sale of annuities or prior to entering into an agreement with a third party provider, written objectives, and strategies to achieve those objectives, and shall designate an senior officer to be responsible for oversight of the on-premises annuities sales program. Policy objectives, including the process for selecting and continuing review of the contracted third party provider, and strategies to achieve those objectives should be reviewed at least annually by the lending institution's board of directors.

N.M. Code R. § 12.15.1.10

12/15/95; Recompiled 10/15/01