Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 1 -- Purpose and Scope

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1. Purpose. This part governs the treatment of nonpublic personal information about consumers by the financial institutions listed in paragraph (b) of this section. This part:
   
   
   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 that information to most nonaffiliated third parties by "opting out" of that disclosure, subject to the exceptions in Rule 13, Rule 14, and Rule 15.
      
      
2. Scope. Except with respect to Rule 30(b), this part applies only to nonpublic personal information about individuals who obtain financial products or services primarily for personal, family, or household purposes from the institutions listed below. This part does not apply to information about companies or about individuals who obtain financial products or services primarily for business, commercial, or agricultural purposes. This part applies to brokers, dealers, and investment companies, as well as to investment advisers that are registered with the Commission. It also applies to foreign (non-resident) brokers, dealers, investment companies and investment advisers that are registered with the Commission. These entities are referred to in this part as "you." This part does not apply to foreign (non-resident) brokers, dealers, investment companies and investment advisers that are not registered with the Commission. Nothing in this part modifies, limits, or supersedes the standards governing individually identifiable health information promulgated by the Secretary of Health and Human Services under the authority of sections 262 and 264 of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. 1320d-1320d-8).
   
   

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