- within Privacy, International Law and Consumer Protection topic(s)
Originally published in: SRZ Client ALERT June 2001
We are writing to all of our investment management clients to remind them that the date for mandatory compliance with the Gramm-Leach-Bliley Act (the "Act") is July 1, 2001 and that each investment fund will be required to have provided privacy notices to its clients that are individuals by that time. We included an article describing the Act and its applicability in our Spring 2001 issue of Investment Management Developments which was sent to you. You may view this article by logging onto the "Publications" portion of our website located at http://www.srz.com/publications.asp and clicking on the article entitled "Investment Advisers and Investment Funds Subject to Consumer Privacy Regulations Effective July 1, 2001," Spring 2001, Investment Management Developments, Robert R. Kiesel and Simon Raykher, which is located under the "New Articles" caption.
For your convenience, we have attached sample privacy notices to this letter. You may need to tailor the sample notices to reflect your actual information collection and sharing practices. We would be happy to assist you in customizing your privacy notice upon your request. Depending on whether you intend to share you client's information with third parties outside an exception to the Act, you may use either Sample Notice 1 or Sample Notice 2, subject to applicable modifications. Sample Notice 1 may be used if you do not intend to share information with nonaffiliated third parties outside an exception to the Act. We expect that most funds will fall into this category. Sample Notice 2 may be used if you do intend to share information with nonaffiliated third parties outside an exception to the Act. In that case, the form should be carefully reviewed and modified to reflect the particular uses to which confidential information will be put. Further guidance on the appropriate notice for you to use may be found in the article referenced above.
You may use the same notice to provide a joint notice for more than one fund if the notice is accurate with respect to all funds covered by the notice and clearly identifies all funds covered. You can also provide a single notice that covers one or more funds as well as entities affiliated with the funds.
With respect to new clients, we suggest providing a copy of the fund's privacy notice with the fund subscription documents. In connection with the Act's requirement that privacy notices be delivered to clients annually, we suggest including a current copy of the fund's privacy notice within the fund's applicable quarterly report.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
