State National Bank has a Web site on which it advertises all of its products. One page of the Web site is devoted to the products of its affiliate, State National Investment Products, Inc. The affiliate sells uninsured mutual funds and various other investments not insured by the FDIC. What are State National's responsibilities for this advertising?

Question

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State National Bank has a responsibility to ensure that the affiliate's page clearly discloses that the investments are not insured by the FDIC and that the FDIC logo does not appear, as this could give the impression that the investments are insured. While the affiliate is ultimately responsible for its own advertising, the bank still has a duty to ensure that its own website is in compliance with regulations. Choice A is incorrect as the bank still has a responsibility to ensure compliance on its own website. Choice B is incorrect as advertising rules still apply to Web sites. Choice C is incorrect as the FDIC logo is not relevant for noninsured investments.

State National Bank Has a Web Site on Which It