Pub. 7 2019 Issue 3

10 The Community Banker www.mibonline.org Nondeposit Investments & Privacy. Q: I have been asked by our bank president to figure out howwe can have our Investment Department (this is not part of the bank and is not an affiliate of the bank) be able to do the following: put informational publica- tions on the banks website (it would state ABC Financial); and have access to our customer base for names, addresses, phone num- bers. The bank would give them the list of customers with a large balance – no account numbers, no exact balances, but this would be higher-asset customers. We use themodel privacy form that states we do not share cus- tomer personal information. I do not want to have to change our privacy forms unless I absolutely have to in order to accomplish this. This would be for business customers as well as consumers. I have read the privacy regulation and, inmy opinion, unless I change our privacy notices, we cannot accomplishwhat he is asking. A: On the website, it would be best if the Investment “Department” (which is not a part of the bank nor an affiliate of the bank) had its own website and the bank website could have a link to it, with the usual pop- up cautioning that the user is leaving the bank website, etc. If the bank determines that it wants to include Investment “Depart- ment” information on its own bank website, then it must be very careful tomake sure that it is very clear that this is not a department/affiliate of the bank and be sure the “Member FDIC” (or some other formof the official advertising statement) does NOT appear on any page(s) with this information. There must be a very clear demarcation/separation between what is the bank (with insured deposits, etc). and what is not the bank (with uninsured investments, etc). On the privacy notice/policy, fromwhat you have toldme, the bank will have to amend its privacy policy/notice and notify customers of the change before sharing any customer information with this unaffiliated entity. You will also have to give customers the opportunity to opt out of such sharing – before sharing their information, set up a system to admin- ister/manage any opt-outs received, etc. The reasons to trust us with your SBA lending really stack up. Profit from people you can trust. Our SBA expertise helps you maximize your community bank’s earning potential. Our team becomes your team, managing and simplifying every step of the process, from loan packaging and closing, to securitization and sale, to portfolio servicing. All at no net cost to you. Talk to us today. 800.340.7304 www.holtandmon.com