Product Names

The name of an investment product can be critical. Names can cause or prevent customer confusion. When the investment product is a bank product, the agencies warn that the bank should distinguish it from bank products by using distinctive names. For example, the Bank of Podunk should not have the Bank of Podunk Fund. In fact, it probably shouldn't have the Podunk Fund, either.

Also avoid names that imply safety of principal. Don't use such names to play off of the consumer's inclination to assume that bank products are safe. So calling a fund "Sure Thing" would mislead customers.

Finally, use distinctive colors and designs for investment products. Assume that the Bank's name and everything that identifies it - from logos to colors on bank stationary - should not be used in connection with investment products. If the bank has proprietary investment products, have a new, independent looking logo designed for the investment product line.

Copyright © 1997 Compliance Action. Originally appeared in Compliance Action, Vol. 2, No. 16 & 17, 12/97