WASHINGTON - The
Mutual fund companies and their adviser partners would also be wise to rethink their seminars, webinars and other one-on-one efforts, observers say.
The order, the second-largest in the agency's history, was issued a day after the OCC put out guidance warning national banks of the dangers posed by such companies, and it signaled growing concerns among regulators about their relationships with banks.
"It's indicative of a new era in regulation, and consumer protection is hotter now than ever before, and what it means is bankers are responsible for safeguarding a lot more than the personal information of their customers," said Jean Veta, a partner at
Though Wachovia said it had dropped ties with telemarketing firms, lawyers stopped short of predicting the order and guidance would lead other banking companies to follow suit - as they have in the case of money-services businesses - saying it represented a bigger potential income stream.