Md. Code Regs. 31.16.08.14

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.16.08.14 - Exception to Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information for Service Providers and Joint Marketing

A. In this regulation, "joint agreement" means a written contract pursuant to which a licensee and one or more financial institutions jointly offer, endorse, or sponsor a financial product or financial service.

B. The opt out requirements in Regulations .08 and .11 of this chapter do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee's behalf, if the licensee:

(1) Provides the initial notice in accordance with Regulation .05 of this chapter; and

(2) Enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use under an exception in Regulation .15 or .16 of this chapter in the ordinary course of business to carry out those purposes.

C. The services a nonaffiliated third party performs for a licensee under §B of this regulation may include marketing of the licensee's own products or services or marketing of financial products or financial services offered pursuant to joint agreements between the licensee and one or more financial institutions.

Md. Code Regs. 31.16.08.14