17 CFR 248.4 - Initial privacy notice to consumers required.
(a)Initial notice requirement. You must provide a clear and conspicuous notice that accurately reflects your privacy policies and practices to:
(2)Consumer. A consumer, before you disclose any nonpublic personal information about the consumer to any nonaffiliated third party, if you make such a disclosure other than as authorized by §§ 248.14 and 248.15.
(b)When initial notice to a consumer is not required. You are not required to provide an initial notice to a consumer under paragraph (a) of this section if:
(2) You do not have a customer relationship with the consumer.
(c)When you establish a customer relationship -
(2)Special rule for loans. You do not have a customer relationship with a consumer if you buy a loan made to the consumer but do not have the servicing rights for that loan.
(3)Examples of establishing customer relationship. You establish a customer relationship when the consumer:
(i) Effects a securities transaction with you or opens a brokerage account with you under your procedures;
(ii) Opens a brokerage account with an introducing broker or dealer that clears transactions with and for its customers through you on a fully disclosed basis;
(iii) Enters into an advisory contract with you (whether in writing or orally); or
(d)Existing customers. When an existing customer obtains a new financial product or service from you that is to be used primarily for personal, family, or household purposes, you satisfy the initial notice requirements of paragraph (a) of this section as follows:
(2) If the initial, revised, or annual notice that you most recently provided to that customer was accurate with respect to the new financial product or service, you do not need to provide a new privacy notice under paragraph (a) of this section.
(e)Exceptions to allow subsequent delivery of notice.
(2)Examples of exceptions -
(i)Not at customer's election. Establishing a customer relationship is not at the customer's election if the customer's account is transferred to you by a trustee selected by the Securities Investor Protection Corporation (“SIPC”) and appointed by a United States Court.
(ii)Substantial delay of customer's transaction. Providing notice not later than when you establish a customer relationship would substantially delay the customer's transaction when you and the individual agree over the telephone to enter into a customer relationship involving prompt delivery of the financial product or service.
(iii)No substantial delay of customer's transaction. Providing notice not later than when you establish a customer relationship would not substantially delay the customer's transaction when the relationship is initiated in person at your office or through other means by which the customer may view the notice, such as on a web site.
(f)Delivery. When you are required to deliver an initial privacy notice by this section, you must deliver it according to § 248.9. If you use a short-form initial notice for non-customers according to § 248.6(d), you may deliver your privacy notice according to § 248.6(d)(3).
- 17 CFR 248.7 — Form of Opt Out Notice to Consumers; Opt Out Methods.
- 17 CFR 248.6 — Information to Be Included in Privacy Notices.
- 17 CFR 248.9 — Delivering Privacy and Opt Out Notices.
- 17 CFR 248.10 — Limits on Disclosure of Nonpublic Personal Information to Nonaffiliated Third Parties.
- 17 CFR 248.13 — Exception to Opt Out Requirements for Service Providers and Joint Marketing.
- 17 CFR 248.5 — Annual Privacy Notice to Customers Required.
- 17 CFR 248.8 — Revised Privacy Notices.
- 17 CFR 248.14 — Exceptions to Notice and Opt Out Requirements for Processing and Servicing Transactions.
- 17 CFR 248.18 — Effective Date; Transition Rule.
- 17 CFR 248.15 — Other Exceptions to Notice and Opt Out Requirements.