ECFR 17 CFR Part 248 Subpart B - Regulation S-AM Limitations on Affiliate Marketing

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Chapter 17 Product and Stock Exchange
Chapter 2-commission and swap
Part 248-S-P, S-AM and S-ID arrangement
Section B

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§ 248. 101	Purpose and range
§ 248. 102	example
§ Article 248, paragraph 103 to Article 248, paragraph 119.
§ 248. 120	Definition
§ 248. 121	Exceptions and exclusions of affiliate marketing
§ 248. 122	Exclusive scope and period
§ 248. 123	Details of exemption notificatio n-integration and equivalent notification
§ 248. 124	Rational opportunities to op t-out
§ 248. 125	Rational and simple method of op t-out
§ 248. 126	Send OPT notification
§ 248. 127	Update of op t-out selection
§ 248. 128	Exit, compliance date, and future application
Appendix of the model and model Article 248, Paragraph B

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URL HTTPS: // www. Gov/Current/Title-17/Part-248/Subpart-B Reference 17 CFR PART 248 Securities and Transactions Committee

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Source:

65 FR 40362, JUNE 29, 2000, as long as there is no particular refuse.

Source:

74 FR 40431, August 11, 2009, as long as there is no particular refuse.

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Registration: 17 CFR Part 248 SUBPART B

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Editorial Note on Part 248

Editorial Note:

The name change to part 248 was published at 74 FR 40431, August 11, 2009.

Subpart B—Regulation S-AM: Limitations on Affiliate Marketing

Source:

74 FR 40431, August 11, 2009, as long as there is no particular refuse.

§ 248.101 Purpose and scope.

(a) Purpose. The purpose of this section is to implement section 624 of the Fair Credit Reporting Act (15 U. S. C. 1681, et seq., "FCRA"). Section 624, which was added to the FCRA by Section 214 of the Fair and Accurate Credit Transactions Act of 2003 (Public Law No. 108-159, 117 Stat. 1952 (2003) (the "FACT Act" or "Act")), governs an affiliate's use of consumer information obtained to make marketing solicitations.

(b) Scope. This section applies to brokers or dealers other than notice-registered brokers or dealers, investment companies, and investment advisers or transfer agents registered with the Commission. In this section, we refer to these entities as "you."

§ 248.102 Examples.

The examples in this section are not exclusive. The examples in this section are intended to provide guidance on how to apply the rules in general situations. However, the facts and circumstances of each individual situation will determine whether compliance with the examples, to the extent applicable, would result in compliance with this section. The examples in a paragraph are intended to illustrate only the matters described in that paragraph and not to illustrate other matters that may arise under this section. Similarly, the examples are not intended to illustrate issues that may arise under other laws or regulations.

§§ 248.103-248.119 [Reserved]

§ 248.120 Definitions.

As used in this section, unless the context otherwise requires, the terms "examples" and "examples" are intended to illustrate issues that may arise under other laws or regulations.

(a) Affiliate of a broker, dealer, investment company, investment adviser, or transfer agent registered with the Commission means a person that is related by common ownership or common control with a broker, dealer, investment company, investment adviser, or transfer agent registered with the Commission. In addition, a broker, agent, investment company, investment adviser, or transfer agent registered with the Commission is considered a subsidiary of a corporation for purposes of this section if:

(1) the corporation is a registered investment company under section 214 of the Act (Public Law 108-159, 117 Stat.; or

(2) rules adopted by another government regulatory authority pursuant to section 214 of the Act treat a broker, dealer, investment company, investment adviser, or transfer agent registered with the Commission as an affiliate of the corporation.

(b) Broker has the same meaning as in Section 3(a)(4) of the Securities Exchange Act of 1934 (15 U. S. C. 78C(a)(4)). "Broker" does not include a broker registered by notice to the Commission pursuant to Section 15(b)(11) of the Securities Exchange Act of 1934 (15 U. S. C. 78o(b)(11)).

(c) Clear and conspicuous means reasonably understandable and designed to call attention to the nature and importance of the information presented.

(d) Commission means the Securities and Exchange Commission.

(e) Entity means a corporation, limited liability company, business trust, partnership, association, or similar entity.

(1) In general. "Concise" means a reasonably concise expression or description.

(2) Combination with other required disclosures. The notice required by this section may be concise even when combined with other disclosures required or permitted by Federal or State law.

(g) Consumer means an individual.

(H) The dominance of the company means the ability to exercise the dominant influence on the management and policies of the company, regardless of the ownership, contract, or other. Those who own more than 25 % of securities with voting rights are deemed to dominate the company. Those who do not own more than 25 % of the company voting rights are considered not dominating the company. The estimation of control can be overturned by evidence, but in the case of investment companies, the procedure described in Article 2 (A) (9) (15 U. S. 80A-2 (A) (9))) in the 1940 Investment Company Law. We will continue until the committee makes the opposite decision.

(i) The dealer has the same meaning as paragraph 3 of the 1934 Stock Exchange Law (5) (15 U. S. C. 78c (A) (5)). The "dealer" does not include an agent who has been notified by the committee in accordance with Article 15 (B) (11) (15 U. S. C. 78O (B) (11)) of the 1934 Securities and Exchange Act.

(J) A qualified information refers to the information that the disclosure is a consumer report if the definition of "consumer report" in Article 603 (2) (a) is not applied. The qualification information does not include a group or blind data that does not identify an individual, such as an account number, name, and address.

(K) What is FCRA?

(L) GLBA is the Gram Reach Brillie method (15 U. S. C. 6801, et Seq.)

(M) Investment advisor has the same meaning as Article 202 (A) (11) (15 U. S. 80B-2 (A) (11)) of the 1940 Investment Advisor Act.

(N) Investment companies have the same meaning as Paragraph 3 of the 1940 Investment Company Law (15 U. S. C. 80A-3) and include other affiliated investment companies.

(O) Sale solicitation

(1) General. "Voluntary marketing" refers to the marketing of products or services that are started by individuals to specific consumers as follows:

(i) As described in this section, it is based on the qualitative information passed on by affiliates to the individual.

(II) We intend to encourage consumers to purchase or obtain such products or services.

(2) Excludes marketing for the general public. Marketing solicitation does not include marketing communication for general consumers. For example, television, genera l-issued magazines, signboard advertisements, and public websites that are not directed to specific consumers buy products and services from those who have started communication. Even if it was intended to encourage consumers like this, it does not fall under marketing solicitation.

(3) Example of marketing solicitation. Marketing recruitment includes, for example, telemarketing telephones for specific consumers, mailing for sales promotion, e-mail, or other formal marketing communications based on qualifications obtained from affiliates.

(P) Individuals are individuals, partnerships, corporations, companies, trusts, heritage, partnerships, groups or institutions, or other companies, or other companies.

(Q) Existing trading relationship

(1) General. (1) General. "Existing trading relationship" refers to the relationship between an agent who has received a license for an individual or an individual:

(i) Financial contracts between individuals and consumers, which are valid on the day when consumers send the invitations to be in this section;

(II) In the 18th month of the previous date when the guide to this section was sent to consumers, consumers purchase, rental, leasing, or finance between consumers and individuals. Transactions (including insurance that are valid or valid, or have another continuous relationship). lingering

(III) The consumer requested or requested the products or services provided by the person in three months just before the date of which this section is sent to the consumer.

(2) Examples related to existing trading.

(i) If consumers are currently valid broker dealers, brokers have existing trading relationships with consumers and solicit their products or services to consumers. In order to perform, the qualitative information received from an affiliated company can be used. (2) Excludes marketing for the general public. Marketing solicitation does not include marketing communication for general consumers. For example, television, genera l-issued magazines, signboard advertisements, and public websites that are not directed to specific consumers buy products and services from those who have started communication. Even if it was intended to encourage consumers like this, it does not fall under marketing solicitation.

(P) Individuals are individuals, partnerships, corporations, companies, trusts, heritage, partnerships, groups, government or government or government or other businesses.

(Q) Existing trading relationship

(1) General. (1) General. "Existing trading relationship" refers to the relationship between an agent who has received a license for an individual or an individual:

(i) Financial contracts between individuals and consumers, which are valid on the day when consumers send the invitations to be in this section;

(III) The consumer requested or requested the products or services provided by the person in three months just before the date of which this section is sent to the consumer.

(2) Examples related to existing trading.

(i) If consumers are currently valid broker dealers, brokers have existing trading relationships with consumers and solicit their products or services to consumers. In order to perform, the qualitative information received from an affiliated company can be used. (2) Excludes marketing for the general public. Marketing solicitation does not include marketing communication for general consumers. For example, television, genera l-issued magazines, signboard advertisements, and public websites that are not directed to specific consumers buy products and services from those who have started communication. Even if it was intended to encourage consumers like this, it does not fall under marketing solicitation.

(P) Individuals are individuals, partnerships, corporations, companies, trusts, heritage, partnerships, groups or institutions, or other companies, or other companies.

(Q) Existing trading relationship

(1) General. (1) General. "Existing trading relationship" refers to the relationship between an agent who has received a license for an individual or an individual:

(i) Financial contracts between individuals and consumers, which are valid on the day when consumers send the invitations to be in this section;

§ 248.121 Affiliate marketing opt out and exceptions.

(III) The consumer requested or requested the products or services provided by the person in three months just before the date when this section was sent to the consumer.

(2) Examples related to existing trading.

(II) If consumers have an investment advisory contract with registered investors, the investor has an existing business relationship with consumers and consumes the conformity information received from the affiliated company. You can solicit products and services to people.

(III) Consumers were the owners of past securities issued by an investment company, but if consumers repaid their securities, the investment company has an existing business relationship with consumers and consumers. For 18 months from the date of redemption of the investment company's securities, consumers can solicit products or services to consumers.

(IV) If the consumer applied for a margin trading account provided by a broker dealer, but did not provide a product or service from a broker dealer, or did not conclude a financial contract or transaction with a broker dealer. Since the dealer has an existing trading relationship with consumers, for three months from the application date, use the compatibility information received from the affiliated company to solicit products or services to consumers. can.

(V) Consumer made inquiries to the broker dealer over the product or service by phone, provided contact information to the broker dealer, but did not receive the product or service from the institution, and had a financial contract with the institution. If not, the broker dealer has an existing trading relationship with consumers, and thus the compatibility information received from the affiliated company to solicit the product or service to consumers. Can be used.

(VI) Consumers contacted Broker dealers by e-mail about one of the related investment companies' products or services, but received products or services from brokers, and concluded financial contracts or transactions. If not, dealers, investment companies, brokers and investment companies have existing business relationships with consumers, so they use the conformity information received from affiliates to make the following solicitation to consumers. Can do. (II) If the consumer has a registered investor, the investor has an existing business relationship with consumers and uses the compatibility information received from the affiliated company. You can solicit products and services to consumers.

(VI) Consumers contacted Broker dealers by e-mail about one of the related investment companies' products or services, but received products or services from brokers, and concluded financial contracts or transactions. If not, dealers, investment companies, brokers and investment companies have existing business relationships with consumers, so they use the conformity information received from affiliates to make the following solicitation to consumers. Can do. (II) If consumers have an investment advisory contract with registered investors, the investor has an existing business relationship with consumers and consumes the conformity information received from the affiliated company. You can solicit products and services to people.

(VII) Call the Central Call Center for affiliated companies to contact the affiliated company group and have existing business relationships about the products or services provided by an investment compan y-related broker dealer. If you provide contact information to the call center, the phone will be an inquiry to the Broker dealer. Under these circumstances, Broker dealers have existing trading relationships with consumers, so for three months from the date of inquiry, use the qualified information received from the investment company to consumers. You can solicit products and services.

(3) Examples where existing trading relationships are not established

(i) When consumers call the central call center of an affiliated company group to contact the consumer's existing accounts in the broker, the phone calls for related companies other than brokers who have consumer accounts. It does not cause existing trading relationships between consumers and brokers related companies, not inquisite.

(II) Consumers who have signed an advisory agreement with the registration investment advisory company called on the affiliated company of the investment advisory company to ask about retail locations and business hours of affiliated companies. If not, the phone is not an inquiry, and there is no existing trading relationship between consumers and affiliates. Similarly, the acquisition of consumer phone numbers is not a survey, and there is no existing trading relationship between consumers and affiliates.

(III) Consumers called a broker dealer in response to advertisements that provide free promotional items to consumers who call tol l-free, but the advertisement calls the ad. The phone is between consumers and broker dealers because consumers have not contacted the product or services provided by financial institutions if the broker dealer's products or services are not sold. Does not cause existing trading relationships. (VII) In order for consumers who have existing companies to belong to the groups of affiliated companies and have existing trading relationships about products or services provided by related broker dealers, Central Call Center for related companies If you call and provide contact information to the Call Center, the phone will be an inquiry to the Broker dealer. Under these circumstances, Broker dealers have existing trading relationships with consumers, so for three months from the date of inquiry, use the qualified information received from the investment company to consumers. You can solicit products and services.

(3) Examples where existing trading relationships are not established

(III) Consumers called a broker dealer in response to advertisements that provide free promotional items to consumers who call tol l-free, but the advertisement calls the ad. The phone is between consumers and broker dealers because consumers have not contacted the product or services provided by financial institutions if the broker dealer's products or services are not sold. Does not cause existing trading relationships. (VII) Call the Central Call Center for affiliated companies to contact the affiliated company group and have existing business relationships about the products or services provided by an investment compan y-related broker dealer. If you provide contact information to the call center, the phone will be an inquiry to the Broker dealer. Under these circumstances, Broker dealers have existing trading relationships with consumers, so for three months from the date of inquiry, use the qualified information received from the investment company to consumers. You can solicit products and services.

(3) Examples where existing trading relationships are not established

(R) The carrier has the same meaning as Article 3 (A) (25) (15 U. S. C. 78c (a) (25)) of the 1934 Stock Exchange Act.

(1) A broker or dealer other than a broker or dealer who was registered to the committee in accordance with Article 15 (B) (11) (15 U. S. C. 78O (B) (11)) of the 1934 Stock Exchange Law.

(2) Investment company

(3) An investment advisory company registered as a committee based on the 1940 Investment Advisor (15 U. S. 80B-1, et Seq.).

(4) A securities agent registered as a European Commission based on Article 17a of the 1934 Stock Exchange Law (15 U. S. C. 78Q-1).

(a) First notification and exemption requirements

(1) General. (1) General. Except in the following cases, do not use marketing solicitation to the consumer using the qualified information for consumers received from affiliates:

(i) If consumers may use the qualities of consumers received from affiliated companies to solicit consumers, or if consumers agree, electronic, electronically. In the outline notification, disclose clearly and noticeable.

(II) Whether consumers provide rational opportunities for "op t-out" and a reasonable and eas y-t o-understand method, or use qualifications to solicit marketing to consumers. When prohibited. And

(III) The consumer is not opt -in.

(2) Example. Consumers have a securities trading account for Broker dealers. The broker provides consumer qualified information to affiliated investment advisors. Based on this qualitative information, the investment advisory company wants consumers to solicit marketing for on e-time advisory accounts. Investment advisors have no consumers and have no existing business relationships, and other exceptions are not applied. The investment advisory company has the opportunity to notify consumers and op t-out, and use the qualitative information obtained from the intermediary affiliated company unless consumers op t-out, and marketing the consumer's first advisory account. Solicings are prohibited.

(3) Related companies that can provide notifications. The notification required by this section must be provided:

(i) A related company that had or had existing trading relationships with consumers. ή (R) Career has the same meaning as Article 3 (A) (25) (15 U. S. C. 78c (A) (25)) of the 1934 Stock Exchange Act.

(1) A broker or dealer other than a broker or dealer who was registered to the committee in accordance with Article 15 (B) (11) (15 U. S. C. 78O (B) (11)) of the 1934 Stock Exchange Law.

(2) Investment company

(3) An investment advisory company registered as a committee based on the 1940 Investment Advisor (15 U. S. 80B-1, et Seq.).

(4) A securities agent registered as a European Commission based on Article 17a of the 1934 Stock Exchange Law (15 U. S. C. 78Q-1).

(a) First notification and exemption requirements

(1) General. (1) General. Except in the following cases, do not use marketing solicitation to the consumer using the qualified information for consumers received from affiliates:

(II) Whether consumers provide rational opportunities for "op t-out" and a reasonable and eas y-t o-understand method, or use qualifications to solicit marketing to consumers. When prohibited. And

(III) The consumer is not opt -in.

(3) Related companies that can provide notifications. The notification required by this section must be provided:

(i) A related company that had or had existing trading relationships with consumers. ή (R) carrier has the same meaning as Article 3 (A) (25) (15 U. S. C. 78c (A) (25)) of the 1934 Stock Exchange Law.

(1) A broker or dealer other than a broker or dealer who was registered to the committee in accordance with Article 15 (B) (11) (15 U. S. C. 78O (B) (11)) of the 1934 Stock Exchange Law.

(2) Investment company

(3) An investment advisory company registered as a committee based on the 1940 Investment Advisor (15 U. S. 80B-1, et Seq.).

(4) A securities agent registered as a European Commission based on Article 17a of the 1934 Stock Exchange Law (15 U. S. C. 78Q-1).

(a) First notification and exemption requirements

(1) General. (1) General. Except in the following cases, do not use marketing solicitation to the consumer using the qualified information for consumers received from affiliates:

(II) Whether consumers provide rational opportunities for "op t-out" and a reasonable and eas y-t o-understand method, or use qualifications to solicit marketing to consumers. When prohibited. And

(III) The consumer is not opt -in.

§ 248.122 Scope and duration of opt out.

(3) Related companies that can provide notifications. The notification required by this section must be provided:

(i) A related company that had or had existing trading relationships with consumers. lingering

(II) In the case of joint notification by two or more members of related company groups. However, it is limited to at least one of the subsidiaries of the joint news that has existing trading relationships with consumers.

(b) Implementation of marketing solicitation

(1) General. (1) General. In this section, in the following cases, marketing solicitation is performed:

(I) Receive qualification information from an affiliated company.

(II) Use its qualitative information to perform the following or more:

(A) Identify the type of consumer or consumer who is soliciting marketing.

(B) Set a standard for selecting consumers who are soliciting marketing.

(III) As a result of using qualification information, provide consumers a marketing invitation.

(2) Receive qualification information from a subsidiary, including a common database. You can receive qualifications from affiliated companies in many ways, including when an affiliated company puts information in a common database that you can access.

(3) Receive or use qualifications from service providers. Unless it is stipulated in this section (B) (5), the service provider who acts on your behalf (whether you are an affiliated company or an independent third party) is this section ( B) When receiving or using the information in the method described in (1) (i) or (B) (1) (II), you receive or use the qualifications of an affiliated company. Depending on all the related facts and situations, if you receive or use affiliate qualification information in connection with your product and service marketing, it will be determined whether that person is acting as your service provider.

(4) When using the qualification information of the affiliated company itself. Unless the qualifications received from the affiliated company in the method described in paragraph (1) (II) of this section (II), the related companies are the recruitment marketing to be eligible for the following. Not all.

(i) Use the unique qualifications obtained in connection with the existing trading relationships that have already been connected or connected to consumers to sell your products or services to consumers of affiliated companies. When to. ή In the case of a joint notification by two or more members of the

(II) The service provider has received the affiliate qualification that the service provider has already connected or connected to the existing trading relationship with consumers to sell your product or service to consumers. When instructing to use information and does not contact the service provider directly about the use.

(5) Use of qualification information by service provider-.

(I) General. Service providers (including a shared database that you can access, or includes an affiliate or thir d-party service provider that can access shared databases) If you receive qualification information from your affiliated company acquired in connection with, and use that qualification information to sell your product or service to consumers of the affiliated company, you are in this section. Do not make target sales and solicites:

(A) A service provider accesses and use (including the right to set specific conditions to use the information to sell your products or services) Management.

(B) Your affiliated company is the qualification of your affiliated company to sell your affiliated company's products and services (or all of your affiliated companies) to your affiliated company consumers Establish specific conditions that can be accessed and used (the identity of a service provider can sell products or services to consumers of the affiliated company, the type of affiliated company's products or services).

(C) Your affiliate guarantees the service provider to use your affiliate qualifications in accordance with the conditions established by your affiliate in connection with your affiliate products or services. Requires a service provider to implement the reasonable policies and procedures designed.

(D) In the marketing materials provided to consumers, or, both, your affiliates are identified. Also

(E) Do not use affiliate qualifications directly in the method described in this section (B) (1) (II).

(II) The requirements of documents. (II) The service provider receives it in connection with the existing trading relationship that has already been connected or connected to consumers to sell your company's products or services to consumers. Instructions to use affiliate qualification information and do not contact the service provider directly about the use.

§ 248.123 Contents of opt out notice; consolidated and equivalent notices.

(5) Use of qualification information by service provider-.

(A) A service provider accesses and use (including the right to set specific conditions to use the information to sell your products or services) Management.

(D) In the marketing materials provided to consumers, or, both, your affiliates are identified. Also

(E) Do not use affiliate qualifications directly in the method described in this section (B) (1) (II).

(II) The requirements of documents. (II) The service provider has received the affiliate qualification that the service provider has already connected or connected to the existing trading relationship with consumers to sell your product or service to consumers. When instructing to use information and does not contact the service provider directly about the use.

(5) Use of qualification information by service provider-.

(A) A service provider accesses and use (including the right to set specific conditions to use the information to sell your products or services) Management.

(D) In the marketing materials provided to consumers, or, both, your affiliates are identified. Also

(E) Do not use affiliate qualifications directly in the method described in this section (B) (1) (II).

(II) The requirements of documents.

(A) The requirements for this paragraph (B) (5) (I) (a) and (c) shall be specified in a written contract between the affiliate and the service provider.

§ 248.124 Reasonable opportunity to opt out.

(B) The specific conditions set by the affiliate specified in paragraph (B) (B) (5) (i) (b) must be specified in writing.

(6) Examples of marketing outreach

(i) Consumers have signed an investment advisory contract with registered investors affiliated with Broker dealers. The broker receives an eligible information on consumers from an investor. In order to obtain marketing solicitation for intermediary products and services, we identify consumers using its qualitative information, and thus provides consumers to solicit the intermediary service to the intermediary service. In accordance with this section (B) (1), the broker dealer has made a marketing solicitation to consumers.

(II) The same fact as the example of this section (b) paragraph (6) (i). However, after using the qualified information to identify consumers who are soliciting marketing products and services, the broker agent requested the registered investment advisor to send the marketing solicitation to the consumer, and the investment adviser is an investment adviser. When sent. In accordance with this section (B) (1), the broker dealer uses consumer qualification information received from an affiliated company to identify consumers who are soliciting marketing of their products or services, so consumers are brokers. Marketing solicitation for products and services. (a) paragraph (b) (5) paragraph (I) (a), and (c) requirements shall be stipulated in written contracts between affiliates and service providers.

(B) The specific conditions set by the affiliate specified in paragraph (B) (B) (5) (i) (b) must be specified in writing.

(6) Examples of marketing outreach

(II) The same fact as the example of this section (b) paragraph (6) (i). However, after using the qualified information to identify consumers who are soliciting marketing products and services, the broker agent requested the registered investment advisor to send the marketing solicitation to the consumer, and the investment adviser is an investment adviser. When sent. In accordance with this section (B) (1), the broker dealer uses consumer qualification information received from an affiliated company to identify consumers who are soliciting marketing of their products or services, so consumers are brokers. Marketing solicitation for products and services. (A) The requirements for this paragraph (B) (5) (I) (a) and (c) shall be specified in a written contract between the affiliate and the service provider.

(B) The specific conditions set by the affiliate, specified in paragraph (B) (5) (I) (i) (b), must be specified in writing.

§ 248.125 Reasonable and simple methods of opting out.

(6) Examples of marketing outreach

(i) Consumers have signed an investment advisory contract with registered investors affiliated with Broker dealers. The broker receives the qualitative information on consumers from the investment advisor. In order to obtain marketing solicitation for intermediary products and services, we identify consumers using its qualitative information, and thus provides consumers to solicit the intermediary service to the intermediary service. In accordance with this section (B) (1), the broker dealer has made a marketing solicitation to consumers.

(II) The same fact as the example of this section (b) paragraph (6) (i). However, after using the qualified information to identify consumers who are soliciting marketing products and services, the broker agent requested the registered investment advisor to send the marketing solicitation to the consumer, and the investment adviser is an investment adviser. When sent. In accordance with this section (B) (1), the broker dealer uses consumer qualitative information received from an affiliated company to identify consumers who will be soliciting marketing of their products or services, so consumers are brokers. Marketing solicitation for products and services.

(III) The same fact as the example of this section (B) (6) (i). However, the qualitative information for consumers who have a registered investment advisor and investment advisory contracts is located in a common database that all members of the related company groups can access and use independently. Without using the qualitative information of the investment advisory company, the broker will prepare the selection criteria and provide their criteria, marketing materials and related instructions to investment advisors. The investment advisory company uses the selection criteria provided by Broker dealers to examine the qualitative information for the company's consumers, determine consumers to receive the marketing materials of the broker, and the broker marketing materials. Send to consumers. Brokers have obtained qualitative information through the shared database prescribed in this section (B) (2), but the broker does not use this information for consumer identification or selection standards. Instead, the investment advisory company used its own qualified information. Therefore, in accordance with this section (B) (4) (i), the broker dealer has not made consumer solicitation marketing.

(IV) The same fact as the example of this section (B) (6) (III). However, registered investment advisors provide investment advisor service providers with broker dealer standards, and use the qualitative information of investment advisors to identify the consumer of investment advisor who meets standards to service providers. Instruct them to send a broker dealer marketing material to those consumers. Brokers do not directly contact the service provider to use the investment advisor information to sell products or services to investment advisors. In accordance with the (B) (4) (II) of this section, the broker dealer has not sent a marketing material of the Broker Dira to consumers or services. (III) The same fact as the example of this section (B) (6) (i). However, the qualitative information for consumers who have a registered investment advisor and investment advisory contracts is located in a common database that all members of the related company groups can access and use independently. Without using the qualitative information of the investment advisory company, the broker will prepare the selection criteria and provide their criteria, marketing materials and related instructions to investment advisors. The investment advisory company uses the selection criteria provided by Broker dealers to examine the qualitative information for the company's consumers, determine consumers to receive the marketing materials of the broker, and the broker marketing materials. Send to consumers. Brokers have obtained qualitative information through the shared database prescribed in this section (B) (2), but the broker does not use this information for consumer identification or selection standards. Instead, the investment advisory company used its own qualified information. Therefore, in accordance with this section (B) (4) (i), the broker dealer has not made consumer solicitation marketing.

(IV) The same fact as the example of this section (B) (6) (III). However, registered investment advisors provide investment advisor service providers with broker dealer standards, and use the qualitative information of investment advisors to identify the consumer of investment advisor who meets standards to service providers. Instruct them to send a broker dealer marketing material to those consumers. Brokers do not directly contact the service provider to use the investment advisor information to sell products or services to investment advisors. In accordance with the (B) (4) (II) of this section, the broker dealer has not sent a marketing material of the Broker Dira to consumers or services. (III) The same fact as the example of this section (B) (6) (i). However, the qualitative information for consumers who have a registered investment advisor and investment advisory contracts is located in a common database that all members of the related company groups can access and use independently. Without using the qualitative information of the investment advisory company, the broker will prepare the selection criteria and provide their criteria, marketing materials and related instructions to investment advisors. The investment advisory company uses the selection criteria provided by Broker dealers to examine the qualitative information for the company's consumers, determine consumers to receive the marketing materials of the broker, and the broker marketing materials. Send to consumers. Brokers have obtained qualitative information through the shared database prescribed in this section (B) (2), but the broker does not use this information for consumer identification or selection standards. Instead, the investment advisory company used its own qualified information. Therefore, in accordance with this section (B) (4) (i), the broker dealer has not made consumer solicitation marketing.

(v) Affiliated groups include investment companies, lead underwriters for investment companies, retail broker-dealers, and transfer agents that also act as service providers. Each subsidiary in the group registers information about consumers in a common database. The service provider has access to all information in the common database. The investment company controls the service provider's access to and use of the suitability information. This control shall be set out in a written agreement between the investment company and the service provider. The written agreement shall also require the service provider to establish reasonable policies and procedures designed to ensure that the service provider uses the investment company's suitability information in accordance with specific terms established by the investment company for marketing the products and services of all affiliates, including prime underwriters and retail broker-dealers. The investment company shall specify in a separate written communication the terms under which the service provider may use the investment company's suitability information to sell the products and services of the retail broker-dealer to the investment company's consumers. The specific terms shall be as follows:

Retail brokers create a selection criteria without using the conformity information of the investment company, and provide these standards, marketing materials, and related instructions to service providers. Service providers use the conformity information of the investment company from the common database to identify the consumers of the investment company that sells broker services. If the sales material of the retailer is provided to consumers who have identified, the name of the investment company will be the sales material of the retailer, the letter of introduction attached to the sales material, the account statement attached to the sales material, or the sales material. It must be described in the envelope containing the material. The requirements of this section (B) (5) are satisfied, and the retail broker has not been soliciting consumers.

(VI) The same fact as the example of this section (B) (6) (V). However, if the service provider is determined to be appropriate, the service provider uses the compatibility information of the investment company to sell the products and services of others who interact with the consumers of the investment company. The terms and conditions allow. Service providers must use the compatibility information of the investment company in accordance with the discretion determined by the terms and conditions. Since the terms and conditions are not concrete, the requirements of this section (B) (5) do not meet.

(C) Exception. When using the qualification information received from the affiliate, the provisions of this section are not applied:

(1) When soliciting marketing to consumers in existing trading relationships.

§ 248.126 Delivery of opt out notices.

(2) To promote communication with individuals who provide employee benefits or other services based on a contract with the employer.

(However, if an affiliate is not allowed to send a marketing solicitation as a result of the consumer selecting op t-out based on this section, this article is not interpreted as permitted to send marketing solicitation on behalf of affiliates; Retail broker creates selection criteria without using investment companies, and provides common databases to service providers with these standards, marketing materials, and related instructions. Use the conformity information of the investment company to identify the consumer of the retailer to identify the sales company that is sold. The requirements of the sales material, the letter of introduction attached to the sales material, the account statement attached to the sales material, or the envelope containing the sales material must be stated. So, the retail broker has not made a sales solicitation to consumers.

(C) Exception. When using the qualification information received from the affiliate, the provisions of this section are not applied:

(1) When soliciting marketing to consumers in existing trading relationships.

(2) To promote communication with individuals who provide employee benefits or other services based on a contract with the employer.

(However, if an affiliate is not allowed to send a marketing solicitation as a result of the consumer selecting op t-out based on this section, this article is not interpreted as permitted to send marketing solicitation on behalf of affiliates; Retail brokers create selection criteria without using investment companies, and provide these standards, marketing materials, and related instructions to service providers from a common database. Use conformity information to identify consumers of retailers who are identified as a broker service to be sold. The requirements of the introductory letter attached to the sales material, the account statement attached to the sales material, or the envelope containing the sales material must be filled. The broker has not made a sales solicitation to consumers.

(C) Exception. When using the qualification information received from the affiliate, the provisions of this section are not applied:

(1) When soliciting marketing to consumers in existing trading relationships.

§ 248.127 Renewal of opt out elections.

(2) To promote communication with individuals who provide employee benefits or other services based on a contract with the employer.

(4) When responding to consume r-led communication on your company's products or services;

(5) In response to approval or request from consumers to receive invitations.

(6) When this section is compliant, in a state that legally operates, it is impossible to comply with the provisions of the State Insurance Law for unreasonable discrimination.

(1) Exceptions related to existing trading. Consumers have a securities trading account for Broker dealers. Consumers also have a deposit account to Broker affiliated financial institutions. The broker receives qualification information about consumers from the affiliated organizations and uses that information to consumers to the broker's university savings account. Broker dealers can solicit this marketing, even if consumers are not given or op t-out opportunities because they have existing business relationships with consumers.

(2) Exceptions of service exceptions

(i) Consumers have a securities trading account for Broker dealers. The broker provides the registration investment advisory company, which is an affiliated company, provides qualified information on consumers. Based on this qualified information, investment advisors want to solicit advisory services to consumers. Investment advisors have no existing business relationships with consumers, and none of the other exceptions in this section (C) are applied. When consumers have received an exception and selected to opt out such a marketing solicitation. An investment advisory company asks a service provider to send a marketing solicitation on behalf of consumers. As a result of consumers' choices, investment advisors are not allowed to solicit marketing, so service providers cannot send marketing solicitation on behalf of investment advisors. (4) When responding to consume r-led communication on your product or service;

(5) In response to approval or request from consumers to receive invitations.

(6) When this section is compliant, in a state that legally operates, it is impossible to comply with the provisions of the State Insurance Law for unreasonable discrimination.

(d) Examination of application

(2) Exceptions of service exceptions

(i) Consumers have a securities trading account for Broker dealers. The broker provides the registration investment advisory company, which is an affiliated company, provides qualified information on consumers. Based on this qualified information, investment advisors want to solicit advisory services to consumers. Investment advisors have no existing business relationships with consumers, and none of the other exceptions in this section (C) are applied. When consumers have received an exception and selected to opt out such a marketing solicitation. An investment advisory company asks a service provider to send a marketing solicitation on behalf of consumers. As a result of consumers' choices, investment advisors are not allowed to solicit marketing, so service providers cannot send marketing solicitation on behalf of investment advisors. (4) When responding to consume r-led communication on your company's products or services;

(5) In response to approval or request from consumers to receive invitations.

(6) When this section is compliant, in a state that legally operates, it is impossible to comply with the provisions of the State Insurance Law for unreasonable discrimination.

(d) Examination of application

(2) Exceptions of service exceptions

(ii) The same facts as in paragraph (d)(2)(i) of this section, except that the consumer has been given an opt-out notice but has not chosen to opt out. The investment adviser must ask the service provider to send the notice to the consumer on the consumer's behalf. As a result of the consumer's failure to opt out, the investment adviser is permitted to make marketing solicitations, and the service provider may send marketing solicitations on the investment adviser's behalf.

(3) Examples of consumer-initiated communications

§ 248.128 Effective date, compliance date, and prospective application.

(i) A consumer who owns shares in an investment company initiates a communication with an affiliated registered investment adviser about advisory services. The affiliated investment adviser may use qualification information about the consumer obtained from the investment company or other affiliates to make a marketing solicitation about the affiliated investment adviser's services in response to the consumer-initiated communication.

(ii) A consumer who has a securities account with a broker-dealer contacts the broker to request information about ways to save and invest for his or her child's education, without identifying the type of savings and investment vehicle that may be of interest to the consumer. The communication may be responsive to information about various products and services offered by the broker and one or more of its affiliates. Such products, services, and investments include: investments in affiliated investment companies, investments in 529 plans offered by a broker-dealer, or trust services offered by another financial institution within the affiliated group. An affiliate that offers a product or service that responds to a consumer's request for information about saving and investing for a child's education may use the credentials to make marketing solicitations to consumers in response to this notice.

(iii) A registered investment adviser makes a marketing call to a consumer without using suitability information received from an affiliate. The investment adviser leaves a voicemail message inviting the consumer to call a toll-free number to obtain information about the services offered by the investment adviser. If a consumer calls a toll-free number to inquire about investment advisory services, the call is a consumer-initiated communication about a product or service, and the investment adviser may currently use suitability information received from an affiliate to make a marketing call to the consumer.

Appendix to Subpart B of Part 248—Model Forms

(iv) A consumer calls a broker-dealer and inquires about store locations and hours of operation, but does not request information about the broker-dealer's products or services. Because the communication initiated by the consumer is not related to the broker-dealer's products or services, the broker-dealer cannot use suitability information received from an affiliate to make a marketing solicitation to the consumer. Thus, the use of suitability information received from an affiliate does not correspond to a communication, and the exemption does not apply.

(v) A consumer calls a broker-dealer and inquires about store locations and hours of operation. The customer service representative asks the consumer if there is a specific product or service for which the consumer is seeking information. The consumer responds that they would like to stop by and learn about mutual funds (i. e., registered open-end investment companies). The customer service representative provides this information over the phone and suggests that the consumer be mailed additional information. The consumer agrees and provides or confirms contact information to receive the mailed materials. The broker-dealer may use the suitability information received from the affiliate to make marketing solicitations to the consumer about mutual funds because these marketing solicitations correspond to consumer-initiated communications about mutual funds.

( 4 ) Examples of consumer authorizations or requests for marketing solicitations.

(I) Consumers with a broker agency at a broker agency approve or request information about life insurance provided by a broker insurance company. Even if this approval or request is given to either a broker / agency or an insurance company, the insuranc e-related company uses the qualifications on consumers obtained from brokers or other related companies. It accepts consumers to solicit life insurance marketing.

(II) Complete online applications for consumers to open an online securities account at a broker agency. The online application form of the broker agency includes a blank check box that consumers can check or request information from broker affiliates. Consumers check the check box. Consumers have permitted or demanded marketing solicitation from a broker affiliated company.

(III) Consumers fill in an online application form to open an online securities trading account on the broker dealer. The broker agent's online application includes a check box indicating that consumers approve or demand information from broker affiliates. Consumers do not cancel the check box selection. Consumers have not approved or demanded marketing monitoring from broker affiliates.

(IV) The contract conditions for the broker account include a pr e-printed fixed phrase that consumers will be approved or requested that consumers will be recruited from a broker dealer affiliated company by applying for an account. There is. Consumers have not approved or demanded follo w-up marketing from a broker agency affiliated company.

(e) Relationship with affiliated company distribution notice and exceptions. For any provisions of this section, the notification of the cas e-b y-case basis of Article 603 (D) (2) (III) (United States Code 15, 1681a (2) (a) (III)). And it does not limit the responsibility of those who comply with the exemption provisions.

(a) Exclusive range

(1) Generally. Unless there are other provisions in this section, by selecting a consumer op t-out, an affiliated company to be eligible for op t-out notification uses the qualitative information obtained from other affiliated companies described in the notification. Consumers are prohibited to solicit marketing.

(2) Continuous relationship

(I) General. When consumers build continuous relationships with your or your affiliated companies, op t-out notifications may apply to the qualified information acquired in connection with the following matters:

(A) A continuing relationship or relationships that a consumer has with you or one of your affiliates, including a continuing relationship established after the delivery of the exemption notice, if the continuing relationship covered by OPT is properly described in the notice.

(B) Any other transactions between the consumer and your affiliates that are described in the notice.

(ii) Examples of continuing relationships. A consumer has a continuing relationship with you or one of your affiliates if:

(A) The consumer opens a brokerage account or enters into an advisory agreement with you or one of your affiliates.

(B) The consumer makes a loan for which you or one of your affiliates holds the servicing rights.

(D) The consumer holds an investment through you or one of your affiliates, such as when you or one of your affiliates act as custodian for securities or assets in an individual retirement arrangement.

(E) The consumer enters into an agreement or understanding with you or one of your affiliates under which you or one of your affiliates undertake to arrange or broker mortgage loans for the consumer.

(F) Entering into a personal property lease with you or your affiliates. ή

(G) Obtaining financial, investment, or financial advisory services from you or your affiliates for a fee.

(3) No Continuing Relationship.

(i) In General. If there is no continuing relationship between a consumer and you or your affiliates and you or your affiliates obtain credential information about a consumer in connection with a transaction with the consumer, such as an isolated transaction or application decline, the opt-out notice provided to the consumer applies only to the credential information obtained in connection with that transaction.

(ii) Examples of Isolated Transactions. An isolated transaction occurs when:#-####

(A) A consumer uses your affiliated ATM or ATMs to withdraw cash from an account at another financial institution. ή

(B) A broker-dealer opens a brokerage account for a consumer on a one-time basis for the sole purpose of clearing or purchasing securities as an accommodation, i. e., without expecting to engage in other transactions.

(4) Alternative menu. For example, solicitation from a specific type of affiliated company to be notified of op t-out notification is prohibited, but no solicitation from other types of affiliated companies to be notified is prohibited, based on certain types of qualitative information. Marketing solicitation is prohibited, but marketing solicitation based on other types of qualitative information is not prohibited or solicitations of M are prohibited. However, one of the options should allow consumers to prohibit all sales and solicitations from all affiliated companies.

(5) Specific rules for notification after all continuous relationships

(I) General. After completing all the continuous relationships with you or your affiliated company, consumers will then build a different relationship with your or your affiliated company, and to solicit marketing. If you have to use, you must provide a new op t-out notification to the consumer. The new op t-out notification must be applied to at least to the qualitative information acquired in connection with the new continuous relationship. Based on the (B) paragraph of this section, the consumer's decision not to op t-out after receiving a new op t-out notification is applied to the qualitative information received in connection with the new op t-out notification. Regardless of whether or not it is performed, the preliminary op t-out selection of consumers applied to the qualitative information received in connection with the terminated relationship is not disabled.

(II) example. One consumer has been registered as a European Commission as a broker dealer and an investment advisor, and has signed an advisory contract with a company, a member of the related group. Consumers cancel the advisory contract. One year after the end of the advisory contract, consumers must open a securities account in the same company. Regardless of whether consumers have op t-out in connection with the advisory contract, the company's affiliated companies use the compatibility information received by the company in connection with new securities accounts to solicit consumers. Previously, we must give consumers a new notification and op t-out opportunity. (4) alternative menu. For example, solicitation from a specific type of affiliated company to be notified of op t-out notification is prohibited, but no solicitation from other types of affiliated companies to be notified is prohibited, based on certain types of qualitative information. Marketing solicitation is prohibited, but marketing solicitation based on other types of qualitative information is not prohibited or solicitations of M are prohibited. However, one of the options should allow consumers to prohibit all sales and solicitations from all affiliated companies.

(5) Specific rules for notification after all continuous relationships

(ii) Examples of Isolated Transactions. An isolated transaction occurs when:#-####

(A) A consumer uses your affiliated ATM or ATMs to withdraw cash from an account at another financial institution. ή

(b) Exception Period. A consumer's opt-out election must remain in effect for at least five years from the time the consumer's election is accepted and implemented (the "opt-out period"), unless the consumer subsequently revokes the opt-out. Opt-out periods longer than five years may be set, including opt-out periods that do not expire unless revoked by the consumer.

(E) The consumer enters into an agreement or understanding with you or one of your affiliates under which you or one of your affiliates undertake to arrange or broker mortgage loans for the consumer.

(1) In General. (1) In General. The notice must be clear, conspicuous, and concise, and must accurately disclose:

(i) Name of the subsidiary providing the notice. If the notice is provided jointly by multiple affiliates, each of which uses a common name, such as "ABC," the notice may indicate that it is provided by multiple companies using the ABC name, or by multiple companies in the ABC group or related companies, by listing, for example, "ABC Companies," "ABC Banking, Credit Card, Insurance and Securities Companies," or the names of each affiliate providing the notice. However, if the subsidiaries providing a common notice do not all share a common name, the notice must name each subsidiary individually or identify each of the common names used by those subsidiaries, for example, by stating that the notice is provided by "ABC Company and all of XYZ Company" or "ABC Bank and Securities Company and XYZ Insurance Company."

(II) List of the type of subsidiary or subsidiary that is notified of the use of qualitative information. If each affiliated company to be notified has a common name such as "ABC", the notification will, for example, "ABC company", "ABC Bank, credit card, insurance, and securities companies", or notifications. By describing the names of each affiliated company that provides, it can indicate that it applies to multiple companies with ABC, or ABC Group or multiple companies in the same line. However, if all affiliated companies that are notified have a common name, the notification must be named the target companies individually or identify each common name used by the affiliated companies. Not. For example, the notification is applied to "all ABC and XYZ companies" or "ABC Bank / Securities Company and XYZ Insurance Company".

(ii) Examples of Isolated Transactions. An isolated transaction occurs when:#-####

(A) A consumer uses your affiliated ATM or ATMs to withdraw cash from an account at another financial institution. ή

(v) Consumer choices must be applied during the specified period described in the notification, and if applicable, the consumer will update the selection after the period has expired.

(VI) For consumers who may have chosen consumers every year, such as when consumers who choose to limit marketing solicitation do not need to act again until they receive an update notification Whether to notify you. Also

(5) Specific rules for notification after all continuous relationships

(I) When two or more consumers acquire products or services jointly, a single op t-out notification can be provided to the joint consumer. One of the joint consumers can exercise the right to opt out. (II) List of the type of subsidiary or subsidiary that is notified of the use of qualitative information. If each affiliated company to be notified has a common name such as "ABC", the notification will, for example, "ABC company", "ABC Bank, credit card, insurance, and securities companies", or notifications. By describing the names of each affiliated company that provides, it can indicate that it applies to multiple companies with ABC, or ABC Group or multiple companies in the same line. However, if all affiliated companies that are notified have a common name, the notification must be named the target companies individually or identify each common name used by the affiliated companies. Not. For example, the notification is applied to "all ABC and XYZ companies" or "ABC Bank / Securities Company and XYZ Insurance Company".

(ii) Examples of Isolated Transactions. An isolated transaction occurs when:#-####

(A) A consumer uses your affiliated ATM or ATMs to withdraw cash from an account at another financial institution. ή

(v) Consumer choices must be applied during the specified period described in the notification, and if applicable, the consumer will update the selection after the period has expired.

(2) Shar e-related.

(III) General explanation of qualification information that can be used to appeal to consumers;

(IV) Consumers must be able to limit the use of qualifications to solicit marketing to consumers.

(v) Consumer choices must be applied during the specified period described in the notification, and if applicable, the consumer will update the selection after the period has expired.

(ii) Examples of Isolated Transactions. An isolated transaction occurs when:#-####

(A) A consumer uses your affiliated ATM or ATMs to withdraw cash from an account at another financial institution. ή

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

These regulations implement Section of the Corporate Transparency Act (CTA), enacted into law as part of the National Defense Authorization. Fair Credit Reporting Affiliate Marketing (12 CFR Part 41), This Regulation S-P, 17 CFR Part Privacy of Consumer Financial Information. I SECTION B CONTROL OF ATHLETICS PROGRAM 43 CFR Part 2 Subpart K. 43 CFR Part 2 Subpart K (enhanced display) page 1 of.

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