Q: What if a person or a group merely endorses a bank? Will the person or group be classified as a deposit broker?
A: If an individual or a group merely makes a general endorsement of a bank in exchange for a flat fee (i.e., a fee unrelated to the number of accounts or amount of deposits generated by the endorsement), then that person or group will not be classified as a deposit broker. In such cases, the endorsements are not viewed as active marketing. Note, however, that the endorsement cannot appear in promotional materials produced or distributed by the individual or the group. Rather, the endorsement must appear in promotional materials produced and distributed by the bank. Otherwise, the individual or group providing the endorsement will be a deposit broker, and the deposits would be brokered.