1. Regulation S-P:
Privacy of Client Financial Information (Regulation S-P)
Regulation S-P requires Whittier to adopt policies and procedures reasonably designed to (a) ensure the confidentiality of customer records and information; (b) protect against any anticipated threats or hazards to the security of customer records and information; and (c) protect against unauthorized access or use of customer records or information that could result in “substantial harm or inconvenience” to any consumer. The privacy provisions of Regulation S-P will apply to information that is “nonpublic personal information.”
Nonpublic information. Under Regulation S-P, nonpublic information includes “personally identifiable information” and any list, description, or grouping that is derived from personally identifiable financial information.
Personally identifiable financial information is defined to include three categories of information:
Information Supplied by Client. Any information that is provided by a client or prospective client to Whittier in order to obtain a financial product or service. This would include information given to Whittier when entering into an investment advisory agreement.
Information Resulting from Transaction. Any information that results from a transaction with the client or any services performed for the client. This category would include information about account balances, securities positions, or financial products purchased or sold through a broker/dealer.
Information Obtained in Providing Products or Services. Any information obtained by Whittier from a consumer report or other outside source which is used by Whittier to verify information that a client or prospective client has given on an application for advisory services.
Policy Procedures. Under the SEC’s privacy rules, Whittier is required to: (1) Adopt policies and procedures to safeguard customer information, (2) Issue an initial and annual privacy notice, and, (3) Issue an opt-out notice if Whittier shares information with third party non- affiliates.
Required Disclosures. The regulation requires disclosure of the types of nonpublic personal information Whittier collects and whether it shares information with affiliates or non-affiliates. Specifically, Whittier’s privacy notices must contain the information listed below, unless the disclosure does not apply to Whittier’s practices at which time the notice can be silent:
B. Whittier’s Privacy Policy
As a general policy, Whittier will not disclose personal financial information about any client to non-affiliated third parties except as necessary to establish and manage the client’s account(s) or as required by law. In these situations, personal financial information about a client may be provided to the broker/dealer or other custodian maintaining these accounts. In addition, Whittier will restrict access to clients’ non-personal financial information to those Firm Personnel who need to know such information in order to provide products or services to clients. Whittier will maintain physical, electronic, and procedural safeguards that comply with federal standards to guard each client’s personal financial information. Such safeguards include restricting the use of any information contained on the Client Investment Guidelines to each client’s personal account manager, the manager’s supervisor or such other persons as the COO or CCO deems as needing to know the information.
C. Delivery of Whittier’s Privacy Notice.
Each client will be provided with a copy of Whittier’s Privacy Notice upon opening an account. In addition, each active client of Whittier will be provided with a copy of the Privacy on an annual basis. A copy of Whittier’s Privacy Notice is included in Appendix B – Annual Privacy Notice to this manual.
