Funds and Advisers
As previously announced, eight federal agencies, including the SEC, adopted a model privacy form that financial institutions can use to comply with their obligation to disclose their information-sharing practices to consumers. This obligation is found in the Gramm-Leach-Bliley Act, which the SEC implements through Regulation S-P. Under Regulation S-P, registered investment companies and advisers are required to deliver an initial and annual Privacy Notice to customers. The Privacy Notice describes a firmís practices with regard to sharing consumer information, and provides consumers an opportunity to restrict a firm from sharing their information.
While the model form is not required, its use establishes a safe harbor for complying with a firmís disclosure obligation. Firms not using the model form must follow specific criteria within their notices, as provided in the rule, to obtain the safe harbor benefit.
As promised, the SEC released an online form builder to assist firms with creating and customizing their Privacy Notices should they opt to use the model privacy form.
Please contact Vista360 if you need guidance regarding the use of the model privacy form.