PART 160—PRIVACY OF CONSUMER FINANCIAL INFORMATION UNDER TITLE V OF THE GRAMM-LEACH-BLILEY ACT Authority: 7 U.S.C. 7b-2 and 12a(5); 15 U.S.C 6801, et seq., Source: 66 FR 21252, Apr. 27, 2001, unless otherwise noted. § 160.1 Purpose and scope. (a) Purpose. (1) Requires a financial institution to provide notice to customers about its privacy policies and practices; (2) Describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to nonaffiliated third parties; and (3) Provides a method for consumers to prevent a financial institution from disclosing nonpublic personal information to most nonaffiliated third parties by “opting out” of that disclosure, subject to the exceptions in §§ 160.13, 160.14, and 160.15. (b) Scope. [66 FR 21252, Apr. 27, 2001, as amended at 75 FR 55450, Sept. 10, 2010; 76 FR 43878, July 22, 2011] § 160.2 Model privacy form and examples. (a) Model privacy form. (b) Examples. [74 FR 62974, Dec. 1, 2009] § 160.3 Definitions. For purposes of this part, unless the context requires otherwise: (a) Affiliate (1) That company is regulated under title V of the GLB Act by the Bureau of Consumer Financial Protection or by a Federal functional regulator other than the Commission; and (2) Rules adopted by the Bureau of Consumer Financial Protection or another Federal functional regulator under title V of the GLB Act treat the futures commission merchant, retail foreign exchange dealer, commodity trading advisor, commodity pool operator, introducing broker, major swap participant, or swap dealer as an affiliate of that company. (b)(1) Clear and conspicuous (2) Examples Reasonably understandable. (A) Present the information in the notice in clear, concise sentences, paragraphs and sections; (B) Use short explanatory sentences or bullet lists whenever possible; (C) Use definite, concrete, everyday words and active voice whenever possible; (D) Avoid multiple negatives; (E) Avoid legal and highly technical business terminology whenever possible; and (F) Avoid explanations that are imprecise and readily subject to different interpretations. (ii) Designed to call attention. (A) Use a plain-language heading to call attention to the notice; (B) Use a typeface and type size that are easy to read; (C) Provide wide margins and ample line spacing; (D) Use boldface or italics for key words; and (E) Use distinctive type size, style and graphic devices, such as shading or sidebars when you combine your notice with other information. (iii) Notices on web sites. (A) Place the notice on a screen that consumers frequently access, such as a page on which transactions are conducted; or (B) Place a link on a screen that consumers frequently access, such as a page on which transactions are conducted, that connects directly to the notice and is labeled appropriately to convey the importance, nature and relevance of the notice. (c) Collect (d) Commission (e) Commodity pool operator (f) Commodity trading advisor (g) Company (h)(1) Consumer (2) Examples. (ii) An individual is not your consumer if he or she provides you only with his or her name, address and general areas of investment interest in connection with a request for a brochure or other information about financial products or services. (iii) An individual is not your consumer if he or she has an account with another futures commission merchant (originating futures commission merchant) for which you provide clearing services for an account in the name of the originating futures commission merchant. (iv) An individual who is a consumer of another financial institution is not your consumer solely because you act as agent for, or provide processing or other services to, that financial institution. (v) An individual is not your consumer solely because he or she has designated you as trustee for a trust. (vi) An individual is not your consumer solely because he or she is a beneficiary of a trust for which you are a trustee. (vii) An individual is not your consumer solely because he or she is a participant or a beneficiary of an employee benefit plan that you sponsor or for which you act as a trustee or fiduciary. (i) Consumer reporting agency (j) Control of a company means the power to exercise a controlling influence over the management or policies of a company whether through ownership of securities, by contract, or otherwise. Any person who owns beneficially, either directly or through one or more controlled companies, more than 25 percent of the voting securities of any company is presumed to control the company. Any person who does not own more than 25 percent of the voting securities of a company will be presumed not to control the company. (k) Customer (l)(1) Customer relationship (2) Examples Continuing relationship. (A) You are a futures commission merchant through whom a consumer has opened an account, or that carries the consumer's account on a fully-disclosed basis, or that effects or engages in commodity interest transactions with or for a consumer, even if you do not hold any assets of the consumer. (B) You are a retail foreign exchange dealer with whom a consumer has opened an account, or that effects or engages in retail forex transactions with or for a consumer, even if you do not hold any assets of the consumer; (C) You are an introducing broker that solicits or accepts specific orders for trades; (D) You are a commodity trading advisor with whom a consumer has a contract or subscription, either written or oral, regardless of whether the advice is standardized, or is based on, or tailored to, the commodity interest or cash market positions or other circumstances or characteristics of the particular consumer; (E) You are a commodity pool operator, and you accept or receive from the consumer, funds, securities, or property for the purpose of purchasing an interest in a commodity pool; (F) You hold securities or other assets as collateral for a loan made to the consumer, even if you did not make the loan or do not effect any transactions on behalf of the consumer; or (G) You regularly effect or engage in commodity interest transactions with or for a consumer even if you do not hold any assets of the consumer. (ii) No continuing relationship. (A) You have acted solely as a “finder” for a futures commission merchant, and you do not solicit or accept specific orders for trades; or (B) You have solicited the consumer to participate in a pool or to direct his or her account and he or she has not provided you with funds to participate in a pool or entered into any agreement for you to direct his or her account. (m) Federal functional regulator means: (1) The Board of Governors of the Federal Reserve System; (2) The Office of the Comptroller of the Currency; (3) The Board of Directors of the Federal Deposit Insurance Corporation; (4) The Director of the Office of Thrift Supervision; (5) The National Credit Union Administration Board; (6) The Securities and Exchange Commission; and (7) The Commodity Futures Trading Commission. (n)(1) Financial institution means: (i) Any futures commission merchant, retail foreign exchange dealer, commodity trading advisor, commodity pool operator, introducing broker, major swap participant, or swap dealer that is registered with the Commission as such or is otherwise subject to the Commission's jurisdiction; and (2) Financial institution (i) Any person or entity, other than a futures commission merchant, retail foreign exchange dealer, commodity trading advisor, commodity pool operator, introducing broker, major swap participant, or swap dealer that, with respect to any financial activity, is subject to the jurisdiction of the Commission under the Act. (ii) The Federal Agricultural Mortgage Corporation or any entity chartered and operating under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq. (iii) Institutions chartered by Congress specifically to engage in securitizations, secondary market sales (including sales of servicing rights) or similar transactions related to a transaction of a consumer, as long as such institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party. (o)(1) Financial product or service (i) Any product or service that a futures commission merchant, retail foreign exchange dealer, commodity trading advisor, commodity pool operator, introducing broker, major swap participant, or swap dealer could offer that is subject to the Commission's jurisdiction; and (ii) Any product or service that any other financial institution could offer by engaging in an activity that is financial in nature or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956, 12 U.S.C. 1843(k). (2) Financial service (p) Futures commission merchant (q) GLB Act (r) Introducing broker (s) Major swap participant. et seq., (t)(1) Nonaffiliated third party (i) Your affiliate; or (ii) A person employed jointly by you and any company that is not your affiliate, but nonaffiliated third party (2) Nonaffiliated third party (u)(1) Nonpublic personal information (i) Personally identifiable financial information; and (ii) Any list, description or other grouping of consumers, and publicly available information pertaining to them, that is derived using any personally identifiable financial information that is not publicly available information. (2) Nonpublic personal information (i) Publicly available information, except as included on a list described in paragraph (t)(1)(ii) of this section or when the publicly available information is disclosed in a manner that indicates the individual is or has been your consumer; or (ii) Any list, description or other grouping of consumers, and publicly available information pertaining to them, that is derived without using any personally identifiable financial information that is not publicly available information. (3) Examples of lists. (ii) Nonpublic personal information does not include any list of individuals' names and addresses that contains only publicly available information, is not derived in whole or in part using personally identifiable financial information that is not publicly available information, and is not disclosed in a manner that indicates that any of the individuals on the list is a consumer of a financial institution. (v)(1) Personally identifiable financial information (i) A consumer provides to you to obtain a financial product or service from you; (ii) About a consumer resulting from any transaction involving a financial product or service between you and a consumer; or (iii) You otherwise obtain about a consumer in connection with providing a financial product or service to that consumer. (2) Examples Information included. (A) Information a consumer provides to you on an application to open a commodity interest trading account, to invest in a commodity pool, or to obtain another financial product or service; (B) Account balance information, payment history, overdraft history, margin call history, trading history, and credit or debit card purchase information; (C) The fact that an individual is or has been one of your customers or has obtained a financial product or service from you; (D) Any information about your consumer if it is disclosed in a manner that indicates that the individual is or has been your consumer; (E) Any information you collect through an Internet “cookie” (an information-collecting device from a web server); and (F) Information from a consumer report. (ii) Information not included. (A) A list of names and addresses of customers of an entity that is not a financial institution; or (B) Information that does not identify a consumer, such as aggregate information or blind data that does not contain personal identifiers such as account numbers, names or addresses. (w)(1) Publicly available information (i) Federal, state or local government records; (ii) Widely distributed media; or (iii) Disclosures to the general public that are required to be made by federal, state or local law. (2) Examples Reasonable belief. (B) You have a reasonable belief that information about your consumer is made available to the general public if you have taken steps to submit the information, in accordance with your internal procedures and policies and with applicable law, to a keeper of federal, state or local government records that is required by law to make the information publicly available. (C) You have a reasonable belief that an individual's telephone number is lawfully made available to the general public if you have located the telephone number in the telephone book or on an internet listing service, or the consumer has informed you that the telephone number is not unlisted. (D) You do not have a reasonable belief that information about a consumer is publicly available solely because that information would normally be recorded with a keeper of federal, state or local government records that is required by law to make the information publicly available, if the consumer has the ability in accordance with applicable law to keep that information nonpublic, such as where a consumer may record a deed in the name of a blind trust. (ii) Government records. (iii) Widely distributed media. (x) Swap dealer. et seq., (y) You (1) Any futures commission merchant; (2) Any retail foreign exchange dealer; (3) Any commodity trading advisor; (4) Any commodity pool operator; (5) Any introducing broker; (6) Any major swap participant; and (7) Any swap dealer. (z) Retail foreign exchange dealer [66 FR 21252, Apr. 27, 2001, as amended at 75 FR 55450, Sept. 10, 2010; 76 FR 43878, July 22, 2011] Subpart A—Privacy and Opt Out Notices § 160.4 Initial privacy notice to consumers required. (a) Initial notice requirement. (1) Customer. (2) Consumer. (b) When initial notice to a consumer is not required. (1) You do not disclose any nonpublic personal information about the consumer to any nonaffiliated third party other than as authorized by §§ 160.14 and 160.15; and (2) You do not have a customer relationship with the consumer. (c) When you establish a customer relationship General rule. (2) Examples of establishing customer relationship. (i) Instructs you to execute a commodity interest transaction for the consumer; (ii) Opens a retail forex account, or opens a commodity interest account through an introducing broker or with a futures commission merchant that clears transactions for its customers through you on a fully-disclosed basis; (iii) Transmits specific orders for commodity interest transactions to you that you pass on to a futures commission merchant for execution, if you are an introducing broker; (iv) Enters into an advisory contract or subscription with you, whether in writing or orally, and whether you provide standardized, or individually tailored commodity trading advice based on the customer's commodity interest or cash market positions or other circumstances or characteristics, if you are a commodity trading adviser; or (v) Provides to you funds, securities, or property for an interest in a commodity pool, if you are a commodity pool operator. (d) Existing customers. (1) You may provide a revised privacy notice under § 160.8 that covers the customer's new financial product or service; or (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. (i) Establishing the customer relationship is not at the customer's election; (ii) Providing notice not later than when you establish a customer relationship would substantially delay the customer's transaction and the customer agrees to receive the notice at a later time; (iii) A nonaffiliated financial institution establishes a customer relationship between you and a consumer without your prior knowledge; or (iv) You have established a customer relationship with a customer in a bulk transfer in accordance with § 1.65, if you are a transferee futures commission merchant, retail foreign exchange dealer or introducing broker. (2) Examples of exceptions Not at customer's election. (ii) Substantial delay of customer's transaction. (iii) No substantial delay of customer's transaction. (f) Delivery of notice. [66 FR 21252, Apr. 27, 2001, as amended at 75 FR 55451, Sept. 10, 2010] § 160.5 Annual privacy notice to customers required. (a)(1) General rule. Annually (2) Example. (b)(1) Termination of customer relationship. (2) Examples. (i) The individual's commodity interest account is closed; (ii) The individual's advisory contract or subscription is terminated or expires; or (iii) The individual has redeemed all of his or her units in your pool. (c) Delivery of notice. (d) Exception to annual privacy notice requirement. (i) Provide nonpublic personal information to nonaffiliated third parties only in accordance with the provisions of §§ 160.13, 160.14, and 160.15 and any other exceptions adopted by the Commission pursuant to section 504(b) of the GLB Act; and (ii) Have not changed your policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed to the customer under § 160.6(a)(2) through (5) and § 160.6(a)(9) in the most recent privacy notice sent to the customer pursuant to this part. (2) Delivery of annual privacy notice after you no longer meet requirements for exception. (i) Changes preceded by a revised privacy notice. (ii) Changes not preceded by a revised privacy notice. [66 FR 21252, Apr. 27, 2001, as amended at 84 FR 17345, Apr. 25, 2019] § 160.6 Information to be included in privacy notices. (a) General rule. (1) The categories of nonpublic personal information that you collect; (2) The categories of nonpublic personal information that you disclose; (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 §§ 160.14 and 160.15; (4) The categories of nonpublic personal information about your former customers that you disclose and the categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal information about your former customers, other than those parties to whom you disclose information under §§ 160.14 and 160.15; (5) If you disclose nonpublic personal information to a nonaffiliated third party under § 160.13 (and no other exception applies to that disclosure), a separate statement of the categories of information you disclose and the categories of third parties with whom you have contracted; (6) An explanation of the consumer's rights under § 160.10(a) to opt out of the disclosure of nonpublic personal information to nonaffiliated third parties, including the method(s) by which the consumer may exercise that right at that time; (7) Any disclosures that you make under § 603(d)(2)(A)(iii) of the Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)(iii)) (that is, notices regarding the ability to opt out of disclosures of information among affiliates); (8) Your policies and practices with respect to protecting the confidentiality and security of nonpublic personal information; and (9) Any disclosure that you make under paragraph (b) of this section. (b) Description of nonaffiliated third parties subject to exceptions. (1) For your everyday business purposes, such as [include all that apply] (2) As permitted by law. (c) Examples Categories of nonpublic personal information that you collect. (i) Information from the consumer; (ii) Information about the consumer's transactions with you or your affiliates; (iii) Information about the consumer's transactions with nonaffiliated third parties; and (iv) Information from a consumer reporting agency. (2) Categories of nonpublic personal information you disclose. (ii) If you reserve the right to disclose all of the nonpublic personal information about consumers that you collect, you may simply state that fact without describing the categories or examples of the nonpublic personal information you disclose. (3) Categories of affiliates and nonaffiliated third parties to whom you disclose. (i) Financial service providers; (ii) Non-financial companies; and (iii) Others. (4) Disclosures under exception for service providers and joint marketers. (i) List the categories of nonpublic personal information you disclose, using the same categories and examples you used to meet the requirements of paragraph (a)(2) of this section, as applicable; and (ii) State whether the third party is: (A) A service provider that performs marketing services on your behalf or on behalf of you and another financial institution; or (B) A financial institution with which you have a joint marketing agreement. (5) Simplified notices. (6) Confidentiality and security. (i) Describe in general terms who is authorized to have access to the information; and (ii) State whether you have security practices and procedures in place to ensure the confidentiality of the information in accordance with your policy. You are not required to describe technical information about the safeguards you use. (d) Short-form initial notice with opt out notice for non-customers. (2) A short-form initial notice must: (i) Be clear and conspicuous; (ii) State that your privacy notice is available upon request; and (iii) Explain a reasonable means by which the consumer may obtain your privacy notice. (3) You must deliver your short-form initial notice according to § 160.9. You are not required to deliver your privacy notice with your short-form initial notice. You instead may simply provide the consumer a reasonable means to obtain your privacy notice. If a consumer who receives your short-form notice requests your privacy notice, you must deliver your privacy notice according to § 160.9. (4) Examples of obtaining privacy notice. (i) Provide a toll-free telephone number that the consumer may call to request the notice; or (ii) For a consumer who conducts business in person at your office, maintain copies of the notice on hand that you provide to the consumer immediately upon request. (e) Future disclosures. (1) Categories of nonpublic personal information that you reserve the right to disclose in the future, but do not currently disclose; and (2) Categories of affiliates and nonaffiliated third parties to whom you reserve the right in the future to disclose, but to whom you do not currently disclose, nonpublic personal information. (f) Model privacy form. [66 FR 21252, Apr. 27, 2001, as amended at 74 FR 62974, Dec. 1, 2009] § 160.7 Form of opt out notice to consumers; opt out methods. (a)(1) Form of opt out notice. (i) That you disclose or reserve the right to disclose nonpublic personal information about your consumer to a nonaffiliated third party; (ii) That the consumer has the right to opt out of that disclosure; and (iii) A reasonable means by which the consumer may exercise the opt out right. (2) Examples Adequate opt out notice. (A) Identify all of the categories of nonpublic personal information that you disclose or reserve the right to disclose, and all of the categories of nonaffiliated third parties to which you disclose the information, as described in § 160.6(a)(2) and (3), and state that the consumer can opt out of the disclosure of that information; and (B) Identify the financial products or services that the consumer obtains from you, either singly or jointly, to which the opt out direction would apply. (ii) Reasonable means to opt out. (A) Designate check-off boxes in a prominent position on the relevant forms with the opt out notice; (B) Include a reply form together with the opt out notice; (C) Provide an electronic means to opt out, such as a form that can be sent via electronic mail or a process at your web site, if the consumer agrees to the electronic delivery of information; or (D) Provide a toll-free telephone number that consumers may call to opt out. (iii) Unreasonable opt out means. (A) The only means of opting out is for the consumer to write his or her own letter to exercise that opt out right; or (B) The only means of opting out as described in any notice subsequent to the initial notice is to use a check-off box that you provided with the initial notice but did not include with the subsequent notice. (iv) Specific opt out means. (b) Same form as initial notice permitted. (c) Initial notice required when opt out notice delivered subsequent to initial notice. (d) Joint relationships. (2) Any of the joint consumers may exercise the right to opt out. You may either: (i) Treat an opt out direction by a joint consumer as applying to all of the associated joint consumers; or (ii) Permit each joint consumer to opt out separately. (3) If you permit each joint consumer to opt out separately, you must permit one of the joint consumers to opt out on behalf of all of the joint consumers. (4) You may not require all joint consumers to opt out before you implement any opt out direction. (5) Example. (i) Send a single opt out notice to John's address, but you must accept an opt out direction from either John or Mary; (ii) Treat an opt out direction by either John or Mary as applying to the entire account. If you do so, and John opts out, you may not require Mary to opt out as well before implementing John's opt out direction; or (iii) Permit John and Mary to make different opt out directions. If you do so: (A) You must permit John and Mary to opt out for each other. (B) If both opt out, you must permit both to notify you in a single response (such as on a form or through a telephone call). (C) If John opts out and Mary does not, you may only disclose nonpublic personal information about Mary, but not about John, and not about John and Mary jointly. (e) Time to comply with opt out. (f) Continuing right to opt out. (g) Duration of consumer's opt out direction. (2) When a customer relationship terminates, the customer's opt out direction continues to apply to the nonpublic personal information that you collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with you, the opt out direction that applied to the former relationship does not apply to the new relationship. (h) Delivery. (i) Model privacy form. [66 FR 21252, Apr. 27, 2001, as amended at 74 FR 62974, Dec. 1, 2009] § 160.8 Revised privacy notices. (a) General rule. (1) You have provided to the consumer a clear and conspicuous revised notice that accurately describes your policies and practices; (2) You have provided to the consumer a new opt out notice; (3) You have given the consumer a reasonable opportunity, before you disclose the information to the nonaffiliated third party, to opt out of the disclosure; and (4) The consumer does not opt out. (b) Examples. (i) Disclose a new category of nonpublic personal information to any nonaffiliated third party; (ii) Disclose nonpublic personal information to a new category of nonaffiliated third party; or (iii) Disclose nonpublic personal information about a former customer to a nonaffiliated third party, if that former customer has not had the opportunity to exercise an opt out right regarding that disclosure. (2) A revised notice is not required if you disclose nonpublic personal information to a new nonaffiliated third party that you adequately described in your prior notice. (c) Delivery. § 160.9 Delivering privacy and opt out notices. (a) How to provide notices. (b)(1) Examples of reasonable expectation of actual notice. (i) Hand-deliver a printed copy of the notice to the consumer; (ii) Mail a printed copy of the notice to the last known address of the consumer; or (iii) For the consumer who conducts transactions electronically, post the notice on the electronic site and require the consumer to acknowledge receipt of the notice as a necessary step to obtaining a particular financial service or product. (2) Examples of unreasonable expectation of actual notice. (i) Only post a sign in your branch or office or generally publish advertisements of your privacy policies and practices; or (ii) Send the notice via electronic mail to a consumer who does not obtain a financial product or service from you electronically. (c) Annual notices only. (1) The customer uses your web site to access financial products and services electronically and agrees to receive notices at the web site and you post your current privacy notice continuously in a clear and conspicuous manner on the web site; or (2) The customer has requested that you refrain from sending any information regarding the customer relationship, and your current privacy notice remains available to the customer upon request. (d) Oral description of notice insufficient. (e) Retention or accessibility of notices for customers. (2) Examples of retention or accessibility. (i) Hand-deliver a printed copy of the notice to the customer; (ii) Mail a printed copy of the notice to the last known address of the customer; or (iii) Make your current privacy notice available on a web site (or a link to another web site) for the customer who obtains a financial product or service electronically and agrees to receive the notice at the web site. (f) Joint notice with other financial institutions. (g) Joint relationships. Subpart B—Limits on Disclosures § 160.10 Limits on disclosure of nonpublic personal information to nonaffiliated third parties. (a)(1) Conditions for disclosure. (i) You have provided to the consumer an initial notice as required under § 160.4; (ii) You have provided to the consumer an opt out notice as required in § 160.7; (iii) You have given the consumer a reasonable opportunity, before you disclose the information to the nonaffiliated third party, to opt of the disclosure; and (iv) The consumer does not opt out. (2) Opt out definition. (3) Examples of reasonable opportunity to opt out. (i) By mail. (ii) By electronic means. (iii) Isolated transaction with consumer. For an isolated transaction with a consumer, (b) Application of opt out to all consumers and all nonpublic personal information. (2) Unless you comply with this section, you may not, directly or through any affiliate, disclose any nonpublic personal information about a consumer that you have collected, regardless of whether you have collected it before or after receiving the direction to opt out from the consumer. (c) Partial opt out. § 160.11 Limits on redisclosure and reuse of information. (a) (1) Information you receive under an exception. (i) You may disclose the information to the affiliate of the financial institution from which you received the information; (ii) You may disclose the information to your affiliates, but your affiliates may, in turn, disclose and use the information only to the extent that you may disclose and use the information; and (iii) You may disclose and use the information pursuant to an exception in § 160.14 or § 160.15 in the ordinary course of business to carry out the activity covered by the exception under which you received the information. (2) Example. (b)(1) Information you receive outside of an exception. (i) To the affiliates of the financial institution from which you received the information; (ii) To your affiliates, but your affiliates may, in turn, disclose the information only to the extent that you can disclose the information; and (iii) To any other person, if the disclosure would be lawful if made directly to that person by the financial institution from which you received the information. (2) Example. (i) You may use that list for your own purposes; (ii) You may disclose that list to another nonaffiliated third party only if the financial institution from which you purchased the list could have lawfully disclosed that list to that third party. That is, you may disclose the list in accordance with the privacy policy of the financial institution from which you received the list as limited by the opt out direction of each consumer whose nonpublic personal information you intend to disclose, and you may disclose the list in accordance with an exception in §§ 160.14 and 160.15, such as in the ordinary course of business to your attorneys, accountants, or auditors. (c) Information you disclose under an exception. (1) The third party may disclose the information to your affiliates; (2) The third party may disclose the information to its affiliates, but its affiliates may, in turn, disclose and use the information only to the extent that the third party may disclose and use the information; and (3) The third party may disclose and use the information pursuant to an exception in § 160.14 or § 160.15 in the ordinary course of business to carry out the activity covered by the exception under which it received the information. (d) Information you disclose outside of an exception. (1) To your affiliates; (2) To its affiliates, but its affiliates, in turn, may disclose the information only to the extent the third party can disclose the information; and (3) To any other person, if the disclosure would be lawful if you made it directly to that person. § 160.12 Limits on sharing account number information for marketing purposes. (a) General prohibition on disclosure of account numbers. (b) Exceptions. (1) To your agent or service provider solely in order to perform marketing for your own services or products, as long as the agent or service provider is not authorized to directly initiate charges to the account; or (2) To a participant in a private-label credit card program or an affinity or similar program where the participants in the program are identified to the customer when the customer enters into the program. (c) Example. Subpart C—Exceptions § 160.13 Exception to opt out requirements for service providers and joint marketing. (a) General rule. (i) Provide the initial notice in accordance with § 160.4; and (ii) Enter into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which you disclosed the information, including use under an exception in § 160.14 or § 160.15 in the ordinary course of business to carry out those purposes. (2) Example. (b) Service may include joint marketing. (c) Definition of joint agreement. joint agreement § 160.14 Exceptions to notice and opt out requirements for processing and servicing transactions. (a) Exceptions for processing and servicing transactions at consumer's request. (1) Processing or servicing a financial product or service that a consumer requests or authorizes; (2) Maintaining or servicing the consumer's account with you, or with another entity as part of an extension of credit on behalf of such entity as part of a private label credit card program or other extension of credit on behalf of such entity; or (3) A proposed or actual securitization, secondary market sale or similar transaction related to a transaction of the consumer. (b) Necessary to effect, administer or enforce a transaction (1) Required, or is one of the lawful or appropriate methods, to enforce your rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service; or (2) Required, or is a usual, appropriate or acceptable method: (i) To carry out the transaction or the product or service business of which the transaction is a part, and record, service or maintain the consumer's account in the ordinary course of providing the financial service or financial product; (ii) To administer or service benefits or claims relating to the transaction or the product or service business of which it is a part; (iii) To provide a confirmation, statement or other record of the transaction, or information on the status or value of the financial service or financial product to the consumer or the consumer's agent or broker; (iv) To accrue or recognize incentives or bonuses associated with the transaction that are provided by you or any other party; (v) In connection with: (A) The authorization, settlement, billing, processing, clearing, transferring, reconciling or collection of amounts charged, debited or otherwise paid using a debit, credit or other payment card, check or account number, or by other payment means; (B) The transfer of receivables, accounts or interests therein; or (C) The audit of debit, credit or other payment information. § 160.15 Other exceptions to notice and opt out requirements. (a) Exceptions to notice and opt out requirements. (1) With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction; (2)(i) To protect the confidentiality or security or your records pertaining to the consumer, service, product or transaction; (ii) To protect against or prevent actual or potential fraud, unauthorized transactions, claims or other liability; (iii) For required institutional risk control or for resolving consumer disputes or inquiries; (iv) To persons holding a legal or beneficial interest relating to the consumer; or (v) To persons acting in a fiduciary or representative capacity on behalf of the consumer; (3) To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating you, persons that are assessing your compliance with industry standards, and your attorneys, accountants and auditors; (4) To the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978, 12 U.S.C. 3401 et seq., (5)(i) To a consumer reporting agency in accordance with the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.; (ii) From a consumer report reported by a consumer reporting agency; (6) In connection with a proposed or actual sale, merger, transfer or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal information concerns solely consumers of such business or unit; or (7)(i) To comply with federal, state or local laws, rules and other applicable legal requirements; (ii) To comply with a properly authorized civil, criminal or regulatory investigation, or subpoena or summons by federal, state or local authorities; or (iii) To respond to judicial process or government regulatory authorities having jurisdiction over you for examination, compliance or other purposes as authorized by law. (b) Examples of consent and revocation of consent. (2) A consumer may revoke consent by subsequently exercising the right to opt out of future disclosures of nonpublic personal information as permitted under § 160.7(f). [66 FR 21252, Apr. 27, 2001, as amended at 76 FR 43879, July 22, 2011] Subpart D—Relation to Other Laws; Effective Date § 160.16 Protection of Fair Credit Reporting Act. Nothing in this part shall be construed to modify, limit or supersede the operation of the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., § 160.17 Relation to state laws. (a) In general. (b) Greater protection under state law. [66 FR 21252, Apr. 27, 2001, as amended at 76 FR 43879, July 22, 2011] § 160.18 Effective date; compliance date; transition rule. (a) Effective date. (b)(1) Notice requirement for consumers who are your customers on the effective date. (2) Example. (c) One-year grandfathering of service agreements. [66 FR 21252, Apr. 27, 2001, as amended at 66 FR 24061, 24183, May 11, 2001; 67 FR 6790, Feb. 13, 2002] §§ 160.19-160.29 [Reserved] § 160.30 Procedures to safeguard customer records and information. Every futures commission merchant, retail foreign exchange dealer, commodity trading advisor, commodity pool operator, introducing broker, major swap participant, and swap dealer subject to the jurisdiction of the Commission must adopt policies and procedures that address administrative, technical and physical safeguards for the protection of customer records and information. These policies and procedures must be reasonably designed to: (a) Ensure the security and confidentiality of customer records and information; (b) Protect against any anticipated threats or hazards to the security or integrity of customer records and information; and (c) Protect against unauthorized access to or use of customer records or information that could result in substantial harm or inconvenience to any customer. [85 FR 29614, May 18, 2020, as amended at 89 FR 71820, Sept. 4, 2024] Appendix A to Part 160—Model Privacy Form A. The Model Privacy Form B. General Instructions 1. How the Model Privacy Form Is Used (a) The model form may be used, at the option of a financial institution, including a group of financial institutions that use a common privacy notice, to meet the content requirements of the privacy notice and opt-out notice set forth in §§ 160.6 and 160.7 of this part. (b) The model form is a standardized form, including page layout, content, format, style, pagination, and shading. Institutions seeking to obtain the safe harbor through use of the model form may modify it only as described in these Instructions. (c) Note that disclosure of certain information, such as assets, income, and information from a consumer reporting agency, may give rise to obligations under the Fair Credit Reporting Act [15 U.S.C. 1681-1681x] (FCRA), such as a requirement to permit a consumer to opt out of disclosures to affiliates or designation as a consumer reporting agency if disclosures are made to nonaffiliated third parties. (d) The word “customer” may be replaced by the word “member” whenever it appears in the model form, as appropriate. 2. The Contents of the Model Privacy Form The model form consists of two pages, which may be printed on both sides of a single sheet of paper, or may appear on two separate pages. Where an institution provides a long list of institutions at the end of the model form in accordance with Instruction C.3(a)(1), or provides additional information in accordance with Instruction C.3(c), and such list or additional information exceeds the space available on page two of the model form, such list or additional information may extend to a third page. (a) Page One. (1) Date last revised (upper right-hand corner). (2) Title. (3) Key frame (Why?, What?, How?). (4) Disclosure table (“Reasons we can share your personal information”). (5) “To limit our sharing” box, as needed, for the financial institution's opt-out information. (6) “Questions” box, for customer service contact information. (7) Mail-in opt-out form, as needed. (b) Page Two. (1) Heading (Page 2). (2) Frequently Asked Questions (“Who we are” and “What we do”). (3) Definitions. (4) “Other important information” box, as needed. 3. The Format of the Model Privacy Form The format of the model form may be modified only as described below. (a) Easily readable type font. (b) Logo. (c) Page size and orientation. (d) Color. (e) Languages. C. Information Required in the Model Privacy Form The information in the model form may be modified only as described below: 1. Name of the Institution or Group of Affiliated Institutions Providing the Notice Insert the name of the financial institution providing the notice or a common identity of affiliated institutions jointly providing the notice on the form wherever [name of financial institution] appears. 2. Page One (a) Last revised date. (b) General instructions for the “What?” box. (2) Institutions must use five (5) of the following terms to complete the bulleted list: Income; account balances; payment history; transaction history; transaction or loss history; credit history; credit scores; assets; investment experience; credit-based insurance scores; insurance claim history; medical information; overdraft history; purchase history; account transactions; risk tolerance; medical-related debts; credit card or other debt; mortgage rates and payments; retirement assets; checking account information; employment information; wire transfer instructions. (c) General instructions for the disclosure table. See (d) Specific disclosures and corresponding legal provisions. For our everyday business purposes. (2) For our marketing purposes. (3) For joint marketing with other financial companies. (4) For our affiliates' everyday business purposes—information about transactions and experiences. (5) For our affiliates' everyday business purposes—information about creditworthiness. (6) For our affiliates to market to you. (7) For nonaffiliates to market to you. (e) To limit our sharing: only (f) Questions box. (g) Mail-in opt-out form. only see see (1) Joint accountholder. (2) FCRA Section 603(d)(2)(A)(iii) opt-out. (3) FCRA Section 624 opt-out. (4) Nonaffiliate opt-out. (5) Additional opt-outs. or (h) Barcodes. 3. Page Two (a) General Instructions for the Questions. (1) “Who is providing this notice?” (2) “How does [name of financial institution] protect my personal information?” (3) “How does [name of financial institution] collect my personal information?” (4) “Why can't I limit all sharing?” “Other important information” (5) “What happens when I limit sharing for an account I hold jointly with someone else?” (b) General Instructions for the Definitions. (1) Affiliates. affiliate information (i) If it has no affiliates, state: “[ name of financial institution has no affiliates (ii) If it has affiliates but does not share personal information, state: “[name of financial institution] does not share with our affiliates”; (iii) If it shares with its affiliates, state, as applicable: “ Our affiliates include companies with a [common corporate identity of financial institution] name; financial companies such as [insert illustrative list of companies]; nonfinancial companies, such as [insert illustrative list of companies]; and others, such as [insert illustrative list].” (2) Nonaffiliates. nonaffiliate information (i) If it does not share with nonaffiliated third parties, state: ” [name of financial institution] does not share with nonaffiliates so they can market to you”; (ii) If it shares with nonaffiliated third parties, state, as applicable: “ Nonaffiliates list categories of companies such as mortgage companies, insurance companies, direct marketing companies, and nonprofit organizations (3) Joint Marketing. joint marketing (i) If it does not engage in joint marketing, state: “ [name of financial institution] doesn't jointly market (ii) If it shares personal information for joint marketing, state, as applicable: “ Our joint marketing partners include [list categories of companies such as credit card companies].” (c) General instructions for the “Other important information” box. (1) State and/or international privacy law information; and/or (2) Acknowledgment of receipt form. [74 FR 62975, Dec. 1, 2009] Appendix B to Part 160—Sample Clauses This appendix only applies to privacy notices provided before January 1, 2011. Financial institutions, including a group of financial holding company affiliates that use a common privacy notice, may use the following sample clauses, if the clause is accurate for each institution that uses the notice. Note that disclosure of certain information, such as assets, income and information from a consumer reporting agency, may give rise to obligations under the Fair Credit Reporting Act, such as a requirement to permit a consumer to opt out of disclosures to affiliates or designation as a consumer reporting agency if disclosures are made to nonaffiliated third parties. A-1—Categories of Information You Collect (All Institutions) You may use this clause, as applicable, to meet the requirement of § 160.6(a)(1) to describe the categories of nonpublic personal information you collect. Sample Clause A-1 We collect nonpublic personal information about you from the following sources: • Information we receive from you on applications or other forms; • Information about your transactions with us, our affiliates or others; and • Information we receive from a consumer reporting agency. A-2—Categories of Information You Disclose (Institutions That Disclose Outside of the Exceptions) You may use one of these clauses, as applicable, to meet the requirement of § 160.6(a)(2) to describe the categories of nonpublic personal information you disclose. You may use these clauses if you disclose nonpublic personal information other than as permitted by the exceptions in §§ 160.13, 160.14 and 160.15. Sample Clause A-2, Alternative 1 We may disclose the following kinds of nonpublic personal information about you: • Information we receive from you on applications or other forms, such as [provide illustrative examples, such as “your name, address, Social Security number, assets and income”]; • Information about your transactions with us, our affiliates or others, such as [provide illustrative examples, such as “your account balance, payment history, parties to transactions and credit card usage”]; and • Information we receive from a consumer reporting agency, such as [provide illustrative examples, such as “your creditworthiness and credit history”]. Sample Clause A-2, Alternative 2 We may disclose all of the information that we collect, as described [describe location in the notice, such as “above” or “below”]. A-3—Categories of Information You Disclose and Parties To Whom You Disclose (Institutions That Do Not Disclose Outside of the Exceptions) You may use this clause, as applicable, to meet the requirements of §§ 160.6(a)(2), (3) and (4) to describe the categories of nonpublic personal information about customers and former customers that you disclose and the categories of affiliates and nonaffiliated third parties to whom you disclose. You may use this clause if you do not disclose nonpublic personal information to any party, other than as is permitted by the exceptions in §§ 160.14 and 160.15. Sample Clause A-3 We do not disclose any nonpubli A-4—Categories of Parties To Whom You Disclose (Institutions That Disclose Outside of the Exceptions) You may use this clause, as applicable, to meet the requirement of § 160.6(a)(3) to describe the categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal information. You may use this clause if you disclose nonpublic personal information other than as permitted by the exceptions in §§ 160.13, 160.14 and 160.15, as well as when permitted by the exceptions in §§ 160.14 and 160.15. Sample Clause A-4 We may disclose nonpublic personal information about you to the following types of third parties: • Financial service providers, such as [provide illustrative examples, such as “mortgage bankers”]; • Non-financial companies, such as [provide illustrative examples, such as “retailers, direct marketers, airlines and publishers”]; and • Others, such as [provide illustrative examples, such as “non-profit organizations”]. We may also disclose nonpublic personal information about you to nonaffiliated third parties as permitted by law. A-5—Service Provider/Joint Marketing Exception You may use one of these clauses, as applicable, to meet the requirements of § 160.6(a)(5) related to the exception for service providers and joint marketers in § 160.13. If you disclose nonpublic personal information under this exception, you must describe the categories of nonpublic personal information you disclose and the categories of third parties with whom you have contracted. Sample Clause A-5, Alternative 1 We may disclose the following information to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements: • Information we receive from you on applications or other forms, such as [provide illustrative examples, such as “your name, address, Social Security number, assets and income”]; • Information about your transactions with us, our affiliates, or others, such as [provide illustrative examples, such as “your account balance, payment history, parties to transactions and credit card usage”]; and • Information we receive from a consumer reporting agency, such as [provide illustrative examples, such as “your creditworthiness and credit history”]. Sample Clause A-5, Alternative 2 We may disclose all of the information we collect, as described [describe location in the notice, such as “above” or “below”] to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. A-6—Explanation of Opt Out Right (Institutions That Disclose Outside of the Exceptions) You may use this clause, as applicable, to meet the requirement of § 160.6(a)(6) to provide an explanation of the consumer's right to opt out of the disclosure of nonpublic personal information to nonaffiliated third parties, including the method(s) by which the consumer may exercise that right. You may use this clause if you disclose nonpublic personal information other than as permitted by the exceptions in §§ 160.13, 160.14 and 160.15. Sample Clause A-6 If you prefer that we not disclose nonpublic personal information about you to nonaffiliated third parties you may opt out of those disclosures; that is, you may direct us not to make those disclosures (other than disclosures permitted or required by law). If you wish to opt out of disclosures to nonaffiliated third parties, you may [describe a reasonable means of opting out, such as “call the following toll-free number: (insert number)”]. A-7—Confidentiality and Security (All Institutions) You may use this clause, as applicable, to meet the requirement of § 160.6(a)(8) to describe your policies and practices with respect to protecting the confidentiality and security of nonpublic personal information. Sample Clause A-7 We restrict access to nonpublic personal information about you to [provide an appropriate description, such as “those employees who need to know that information to provide products or services to you”]. We maintain physical, electronic and procedural safeguards that comply with federal standards to safeguard your nonpublic personal information. [66 FR 21252, Apr. 27, 2001, as amended at 74 FR 62984, Dec. 1, 2009]