NR 2003-33
For Immediate Release
April 24, 2003
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Regulators Issue
Guidance on the Risks of Weblinking
WASHINGTON- Four financial services regulatory
agencies today issued guidance to assist financial institutions in
identifying and managing the potential risks involved in the use of
weblinks. A weblink transports a viewer to a different part of a
website or to another website. The primary source of risk is that
financial institution customers may be confused about the role and
responsibility of the institution with respect to products or
services available from third parties through the weblink. The risk
of confusion is particularly significant when a weblink enables a
customer to purchase a financial product or service. Customer
confusion can also occur if it is unclear whether financial products
from linked third parties are federally insured. In response to
these risks, today's guidance encourages financial institutions to
use clear and conspicuous disclosures to explain their limited roles
with respect to products and services offered by third parties. The
regulatory agencies also encourage financial institutions to have
plans and programs to respond to customer complaints, conduct
appropriate due diligence of potential weblinking parties and
monitor the activities of linked third parties to ensure that they
are aware of any changes in the risks associated with the weblinking
relationship.
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Attachment
Media Contacts:
FDIC David
Barr
(202) 898-6992
NCUA Cherie
Umbel (703) 518-6337
OCC Dean
DeBuck (202) 874-5770
OTS Chris
Smith (202)
906-6677
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