Answer:
Answer by Sam Ott:
Yes, you can treat a sole proprietor like a corporation in relation to the privacy notice requirements of the Privacy Rule. The purpose and scope of the Privacy Rule is stated in Section ______.1(b). The Rule only applies to nonpublic personal information about individuals who obtain financial products or services primarily for personal, family, or house hold purposes. It does not apply to information about companies or about individuals who obtain financial products or services for business, commercial, or agricultural purposes. A sole proprietor is an individual who is operating a business and the requirement for privacy notices under the Privacy Rule to not apply to either sole proprietors or corporations.
Answer:
Answer by Linda Westfall:
The privacy rule protects "consumers". The regulation defines consumer as any individual who is seeking to obtain or has obtained a financial product or service from a bank for personal, family, or household purposes. A sole proprietorship account is established for a business purpose and therefore is exempt from the regulation.
First published on BankersOnline.com 5/07/01
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