Survey: One-Third of Investment Firms Share Customer Data
Thirty-four percent of investment company representatives surveyed said they provide customer information to nonaffiliated third parties, either for joint marketing purposes or for operational support, according to a report from KPMG LLP, a professional services firm.
The survey, which was taken among more than 100 attendees of the Investment Company Institutes 2000 General Membership Meeting, also revealed that nearly three fourths of the company’s represented have a privacy policy, only 64% disclose the policies at the time a relationship with a customer is established.
Among the 34% that provide information to third parties, 69% said they require the third parties to execute a confidentiality agreement to limit the use of personal information, and 72% said that the third parties were monitored for compliance.
Four in ten of those surveyed said that customers can chose to have their personal information withheld from nonaffiliated third parties, and 83% said that their firms have comprehensive plans for customer data protection.
