FINRA-regulated broker-dealers must provide customers with clear and prominent privacy policy disclosures that explain the types of nonpublic personal and financial information the firm collects, the categories of affiliated and non-affiliated third parties with whom it may share this customer data, the security measures in place to protect the confidentiality and integrity of the information, and customers’ rights to access, review, and opt-out of certain information sharing arrangements. Firms must deliver an initial privacy notice at account opening, provide annual updates, and notify customers of any material changes to the policy, while maintaining records to demonstrate compliance with these privacy disclosure obligations designed to give customers transparency into how their personal data is handled.
