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#751689 - 06/12/07 07:23 PM sending privacy notices to investment customers
Simply Sheldon Offline
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Simply Sheldon
Joined: Oct 2005
Posts: 2,047
S.E. TX
We have investment services that has our name but it is owned and operated by a different company here at our bank. We are about to send out our privacy notices and I'm not sure if we should be sending the customers who are just investment customers the Bank's privacy notice when technically they are not our customer's and that investment company sends out their own privacy notices.

Any opinions?

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Operations Compliance
#751703 - 06/12/07 07:33 PM Re: sending privacy notices to investment customers Simply Sheldon
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
What type of investment services? If these involve NDIP, it appears you may have crossed a dangerous line.
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Life without Jesus is like an unsharpened pencil - it has no point.

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#751842 - 06/12/07 08:58 PM Re: sending privacy notices to investment customers BrendaC
Simply Sheldon Offline
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Simply Sheldon
Joined: Oct 2005
Posts: 2,047
S.E. TX
yes NDIP..

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#751879 - 06/12/07 09:36 PM Re: sending privacy notices to investment customers Simply Sheldon
Simply Sheldon Offline
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Simply Sheldon
Joined: Oct 2005
Posts: 2,047
S.E. TX
I would like to add that however that they are the the investment company's customers/files we (our bank)also stores their customer files and information so it is retained by the bank.

So our Bank does have some control of sensitive customer information of the investment company's customers and it is my understanding that the purpose of the privacy notice is to notify our customers that we have their sensitive information and that we will protect that information and that we will not share that information [or if we do share that information, the customer will have an opt-out opportunity to tell us not to share].

However I am also have the opinion that as long as an investment customer is strictly one of their customers and does not have any FDIC insured products provided to them by us then the investment company's privacy notice should suffice and we shouldn't have to send them one of ours...

I'm kind of in a pickle...

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#752609 - 06/13/07 08:00 PM Re: sending privacy notices to investment customers Simply Sheldon
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
I think the owner of the information (which appears to be the investment company), if subject to GLBA privacy rules, would provide the notice. In the notice they would define their affiliate sharing policy and provide the customers a chance to opt out of affiliate sharing. That is, if you are an affiliate. If you are not an affiliate, they would disclose their practice to share their information with third parties.
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Life without Jesus is like an unsharpened pencil - it has no point.

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#753007 - 06/14/07 02:16 PM Re: sending privacy notices to investment customers BrendaC
Simply Sheldon Offline
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Simply Sheldon
Joined: Oct 2005
Posts: 2,047
S.E. TX
Thank you... I have just sorted this out with their (the investment company's) compliance officer and since we only act as a custodian to the customer's information, and its spelled out in the contract, we will not be sending them a privacy notice.

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