I'm feeling stupid, but I need to know if anyone can push me in the right direction here.

We share 2 employees with an investment (brokerage) company. These employees aren't allowed to have access to our computer system. They want to know if they can have access to a list of maturing CDs and IRAs.

This is where I feel stupid. I don't think we can legally do this, but at the same time, I can't find a reference to this in the regs to support my answer. Is this something that we could do, but then we would need to ad it to our privacy disclosure and then give the customers the right to opt out? Can anyone point me to the proper part of GLP or Reg P or whatever I need to find this?

Thanks for any help.

I think that the privacy reg is designed to cover this scenario. Those employees intend to solicit bank customers, but they are actually working for a separate company as they makes whose calls. There must be a disclosure and an opt out under the privacy reg.

216.6
(3) The categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal information, other than those parties to whom you disclose information under §§ 216.14 and 216.15;

There are never any stupid questions here!

How is your contract drawn? Is it a joint marketing agreement?

I've never been privy (sp?) to the contract, I'll have to check with management. Thanks for the feedback, I'll look at this again.

The stated scenario would not be covered under the joint marketing agreement exception under Reg P.

I should ad that the firm is an affiliate of the bank. (Or at least I think it is, I'll check on that.) I finally found my binder from ABA Compliance School in 2002 where Mary Beth Guard did a wonderful job of guiding us through the RFPA and Reg P (she did do a great job, I'm not just sucking up ). I'm starting to believe that if the firm is an affiliate (I think it is a joint venture) that we can share this information with them, that we must disclose it in our privacy policy, but since it is an affiliate, we don't have to provide the opportunity to opt out.

Am I right or do I need to continue this Monday when my brain has had a chance to heal.

Thanks.

You can share this information with your brokerage partner, whether affiliated or not, without opt-out.

As an affiliate, you may share the data under FCRA because you are sharing data regarding your transactions or experience with the client; that is, when their CDs mature. That is not considered a consumer report under FCRA, so no opt-out is required.

If the brokerage is not an affiliate, presumably you have an written joint marketing arrangement with the firm. I am making this assumption because you share employees. Under section __.13(b), you may share data with nonaffiliated companies with whom you have joint marketing arrangements, provided there is a written agreement that limits use of the information to the purpose for which it was provided. Once again, sharing the information is not a consumer report under FCRA, because it relates to your transactions and experiences with the client.

I agree with PBrinker. Either way you could share this information without an opt out. Assuming it is not an affiliate, you would be relying on the .13 exception. Your privacy policy should indicate that you share information with other financial instutitutions with whom you have joint marketing agreements.

IMHO - Non-affiliated brokerage partners normally do not qualify under the joint marketing exception. They do not "perform services for you or functions on your behalf". Nor do they perform the "marketing of financial products or services offered pursuant to joint agreements between you and one or more financial institutions". The products are offered through and by the non-affiliate brokerage partner - that's what all your other disclosures will state. While you can share that information with the dual employees, they cannot use that information on behalf of the non-affiliated third party broker without an opt-out.

Randy, I have to disagree. I can't speak for others, but in my last life as well as this current one, we have a written contractual relationship for the marketing of the brokerage's products on out premises using dual employees.

Under the definitions of GLB and the promulgated regulation, brokerage firms are financial institutions - sale of securities, etc. is considered an acitivty "financial in nature" under the Bank Holding Company Act.

The products sold - stocks, bonds, mutual funds, annuities, etc. - meet the definition of financial products under both the statute and regulation.

That seems to meet the "marketing of financial products or services offered pursuant to joint agreements between the bank and one or more financial institutions" exception to opt-out in section _.13(b).