S.D. Admin. R. 20:06:45:13

Current through Register Vol. 50, page 147, May 28, 2024

Section 20:06:45:13 - Exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing

(1) General rule.

(A) The opt out requirements in §§ 20:06:45:07 and 20:06:45:10 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 § 20:06:45:04; 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 § 20:06:45:14 or 20:06:45:15 in the ordinary course of business to carry out those purposes.

(B) Example. If a licensee discloses nonpublic personal financial information under this section to a financial institution with which the licensee performs joint marketing, the licensee's contractual agreement with that institution meets the requirements of subdivision 20:06:45:13(1)(A)(2) if it prohibits the institution from disclosing or using the nonpublic personal financial information except as necessary to carry out the joint marketing or under an exception in § 20:06:45:14 or 20:06:45:15 in the ordinary course of business to carry out that joint marketing.

(2) Service may include joint marketing. The services a nonaffiliated third party performs for a licensee under subdivision 20:06:45:13(1) may include marketing of the licensee's own products or services or marketing of financial products or services offered pursuant to joint agreements between the licensee and one or more financial institutions.

(3) Definition of joint agreement. For purposes of this section, 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 service.

S.D. Admin. R. 20:06:45:13

28 SDR 15, effective 7/1/2001.

General Authority: SDCL 58-2-41.

Law Implemented: SDCL 58-2-41.