Our Trust Department wants to solicit our retail deposit customers. They are requesting a list. Is this acceptable?

Can anyone provide guidance through experiencing this or direct me to information I can research. I really don't even know where to start with this one. Thanks.

If they are just a department of the bank and not an affiliate - what regulation do you think might apply?

My initial thoughts are that GLBA and FCRA wouldn't apply. Correct?

I am not sure if there are any regulations dealing with Trust Departments that would come into play. I know our Trust Department does not have access to our retail deposit computer system and vice versa - they are separate - not really sure what law/reg. requires this. Also, this is the first time the Trust area has even considered any type of marketing such as this so this is all new. We don't want to miss something.

Our investments area has been trying to use our deposit customer information for quite some time. The investments area has finally been deemed part of the bank, not an affiliate and the employees are employees of the bank. They contract through a third party to provide the investment vehicle but the employees are contracted with this company rather than acting as a dual employee - they never receive any type of compensation from the third party. Therefore, we deem them bank employees and nonpublic information about our customers is never shared with the third party but rather the employees of our bank that work in the investment area. Any thoughts on this?

Thanks

I would be interested in any feedback on this as well especially if the investment employee would be considered a dual employee for privacy and opt-out purposes even though they are only compensated by the bank but sell third party products. Would this fall in line similar to selling credit life?

This has resurfaced. Does anyone have experience determining if a bank employee that is contracted with a third party to sell investment products is considered a dual employee? (This employee receives all compensation from the bank.)

I would consider a bank employee that is licensed to sell investment products for a third-party broker-dealer to be a dual employee.

Thanks BrendaC. That's my opinion too, but this is employee believes that she is just "contracted" with no direct compensation and therefore is not a dual employee. How do I explain this to make her and management understand?

She is representing the interests of two parties: the bank and the broker-dealer. There should be clear descriptions of job duties and responsibilities in the job description and procedures in place that outline duties for each including: managing opt ins/opt outs, identifying prospective clients and any prohibitions relative to data mining, setting of sales environment, disclosures, etc.

Thanks again BrendC!
I believe our agreement with the broker-dealer constitutes a joing marketing agreement. If we disclose this in our privacy policy, I believe we should be okay in terms of privacy. Anything else I'm not thinking of?
Thanks again for your help!

Any answers to the original question?

"Our Trust Department wants to solicit our retail deposit customers. They are requesting a list. Is this acceptable?
Our investments area has been trying to use our deposit customer information for quite some time. The investments area has finally been deemed part of the bank, not an affiliate and the employees are employees of the bank. They contract through a third party to provide the investment vehicle but the employees are contracted with this company rather than acting as a dual employee - they never receive any type of compensation from the third party. Therefore, we deem them bank employees and nonpublic information about our customers is never shared with the third party but rather the employees of our bank that work in the investment area. Any thoughts on this?"
Thank you!