Your Privacy Rights
July 28th, 2008 | by Editor |The Personal Information Protection and Electronic Documents Act (PIPEDA) has caused some confusion for clients about financial advisors’ right to collect information about them. A 2007 review of the issue by the Privacy Commission clarified that not only were advisors expected to collect information from clients, they were required to collect it. Without access to this information, it is impossible for an advisor to confidently recommend the most suitable products.
Multiple regulations require an advisor to obtain personal information: know your client obligations, product suitability principles, privacy legislation and anti-money laundering rules.
Advisors are obligated to: 1) keep the information strictly confidential; 2) disclose who will be seeing the information; and 3) outline the reason they will see it.