Marketing for Financial Firms US and Canada

What are legal marketing and privacy concerns I should be aware of when marketing the services of a financial firm in the United States?

As a financial firm in the United States or Canada, it’s important to be aware of legal marketing and privacy concerns to ensure that your marketing practices are compliant with applicable laws and regulations. 

Here are some of the key issues to consider.

These are some of the key differences to be aware of when marketing financial services in Canada. It’s important to consult with a legal professional to ensure that your marketing practices are in compliance with all applicable Canadian laws and regulations.

As a marketing agency, servicing Canada’s top financial firms, our processes are sensitive to the compliance protocols, and their variances with different firms.  We work hard to adhere to, and advise our clients where possible.  We always recommend that our team works closely with your in-house compliance team, and will be available to adjust our operating procedures to adhere to your specific legal and compliance needs.

How do regulations differ if the firm was in Canada?

Marketing financial services in Canada is subject to different regulations than in the United States. Here are some key differences to be aware of:

1. Marketing Compliance with Canadian Securities Administrators (CSA): In Canada, the marketing of securities and other financial products is regulated by the Canadian Securities Administrators (CSA). The CSA’s rules cover advertising and marketing practices, including restrictions on the use of performance results, testimonials, and endorsements.
2. Privacy Concerns: In Canada, privacy is protected under the Personal Information Protection and Electronic Documents Act (PIPEDA). This law sets out rules for the collection, use, and disclosure of personal information in the course of commercial activities.
3. Telemarketing Regulations: In Canada, telemarketing activities are regulated by the National Do Not Call List (DNCL) rules, which allow consumers to opt out of receiving telemarketing calls.
4. Website Disclosures: The disclosures and terms of use of a financial firm’s website must comply with applicable Canadian laws and regulations, such as the Personal Information Protection and Electronic Documents Act (PIPEDA) and the Electronic Commerce Protection Regulation
5. Marketing through Email: The use of email for marketing purposes is subject to Canadian anti-spam laws, such as the Canadian Anti-Spam Legislation (CASL), which requires commercial emails to be truthful and not misleading, and to include an opt-out mechanism.

What are some of the privacy laws that I need to be aware of in Canada?

In Canada, there are several privacy laws that financial firms need to be aware of in order to protect the personal information of their customers. Here are some of the key laws:

1. Personal Information Protection and Electronic Documents Act (PIPEDA): PIPEDA is a federal law that regulates the collection, use, and disclosure of personal information by organizations engaged in commercial activities. Financial firms must comply with PIPEDA to ensure the privacy of their customers’ personal information.
2. British Columbia’s Personal Information Protection Act (PIPA): PIPA is a provincial privacy law that regulates the collection, use, and disclosure of personal information by organizations engaged in commercial activities in British Columbia. Financial firms operating in British Columbia must comply with PIPA.
3. Quebec’s An Act Respecting the Protection of Personal Information in the Private Sector: This Quebec law regulates the collection, use, and disclosure of personal information by organizations engaged in commercial activities in Quebec. Financial firms operating in Quebec must comply with this law.
4. Alberta’s Personal Information Protection Act (PIPA): PIPA is a provincial privacy law that regulates the collection, use, and disclosure of personal information by organizations engaged in commercial activities in Alberta. Financial firms operating in Alberta must comply with PIPA.

These are some of the key privacy laws in Canada that financial firms must be aware of. Financial firms must comply with all applicable laws and regulations to ensure the privacy of their customers’ personal information. It’s important for financial firms to consult with a legal professional to ensure that their practices are in compliance with all applicable laws and regulations.

Are there any privacy laws specific to Ontario, Canada that financial services providers should be aware of?

Yes, in Ontario, Canada there is a privacy law specific to the province, the Personal Health Information Protection Act (PHIPA). PHIPA regulates the collection, use, and disclosure of personal health information by health information custodians, which includes hospitals, long-term care homes, and other health-care providers.

Financial firms that provide health insurance products or offer services related to personal health information must comply with PHIPA to ensure the privacy of their customers’ health information. This means they must implement appropriate security measures, obtain consent before collecting personal health information, and only use or disclose such information for specific purposes.

In addition to PHIPA, financial firms in Ontario must also comply with other privacy laws such as the Personal Information Protection and Electronic Documents Act (PIPEDA) and the Ontario’s Freedom of Information and Protection of Privacy Act (FIPPA).

It’s important for financial firms in Ontario to consult with a legal professional to ensure that their practices are in compliance with all applicable privacy laws and regulations.What are the main considerations for US Financial Firms with respect to marketing and privacy?

As a financial firm in the United States, it’s important to be aware of legal marketing and privacy concerns to ensure that your marketing practices are compliant with applicable laws and regulations. Here are some of the key issues to consider:

1. Marketing Compliance with SEC and FINRA Regulations: The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have strict rules regarding advertising and marketing activities for financial firms. These rules cover areas such as testimonials, performance claims, and misleading or incomplete information.
2. Advertising to Investors: Financial firms must be mindful of the type of advertising they direct to investors, including restrictions on the use of performance results, testimonials, and endorsements.
3. Telemarketing Regulations: There are various telemarketing regulations that financial firms need to comply with, such as the Telephone Consumer Protection Act (TCPA) and the Do Not Call Registry.
4. Marketing through Email: The use of email for marketing purposes is subject to various laws, such as the CAN-SPAM Act, which requires commercial emails to be truthful and not misleading, and to include an opt-out mechanism.
5. Privacy Concerns: Privacy is a major concern when marketing financial services, as financial firms often handle sensitive personal and financial information. It’s important to comply with privacy laws such as the Gramm-Leach-Bliley Act (GLBA) and the General Data Protection Regulation (GDPR).
6. Website Disclosures: The disclosures and terms of use of a financial firm’s website must comply with applicable laws and regulations, such as the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Electronic Fund Transfer Act (EFTA).

These are just some of the key legal marketing and privacy concerns to be aware of when marketing financial services in the United States. It’s important to consult with a legal professional to ensure that your marketing practices are in compliance with all applicable laws and regulations.

What are the main differences between Can-spam act, CASL and GDRP as they pertain to financial firms?

The CAN-SPAM Act, Canadian Anti-Spam Legislation (CASL), and General Data Protection Regulation (GDPR) are all laws that regulate the use of electronic communication for marketing purposes. However, there are some key differences between these laws, particularly as they pertain to financial firms.

1. CAN-SPAM Act: The CAN-SPAM Act is a U.S. law that regulates the use of email for commercial purposes. It requires commercial emails to be truthful and not misleading, and to include an opt-out mechanism. The CAN-SPAM Act applies to all companies, including financial firms, that use email for commercial purposes.
2. Canadian Anti-Spam Legislation (CASL): CASL is the Canadian equivalent of the CAN-SPAM Act. It regulates the sending of commercial electronic messages, including emails, texts, and instant messages. CASL requires that commercial messages be clearly identified as such and include a way for recipients to unsubscribe. Financial firms operating in Canada must comply with CASL when sending commercial messages to Canadian residents.
3. General Data Protection Regulation (GDPR): The GDPR is a European Union (EU) law that regulates the collection, use, and storage of personal data. The GDPR applies to all companies, including financial firms, that process personal data of individuals in the EU. The GDPR sets out strict rules for obtaining consent, providing privacy notices, and protecting personal data. Financial firms operating in the EU or offering services to individuals in the EU must comply with the GDPR.

In summary, the CAN-SPAM Act and CASL regulate the use of email for commercial purposes, while the GDPR regulates the collection, use, and storage of personal data. Financial firms must comply with all applicable laws to ensure that their marketing practices are in compliance with the law.

What are some of the privacy laws that I need to be aware of in the United States?

In the United States, there are several privacy laws that financial firms need to be aware of in order to protect the personal information of their customers. Here are some of the key laws:

1. Gramm-Leach-Bliley Act (GLBA): The GLBA is a federal law that requires financial institutions to protect the privacy of their customers’ non-public personal information. The GLBA requires financial firms to implement appropriate security measures, to provide customers with privacy notices, and to restrict access to sensitive information.
2. Fair Credit Reporting Act (FCRA): The FCRA regulates the collection and use of credit information. It requires financial firms to obtain consumers’ consent before accessing their credit reports and to provide them with access to their credit reports.
3. Health Insurance Portability and Accountability Act (HIPAA): HIPAA is a federal law that regulates the use and disclosure of protected health information. Financial firms that provide health insurance products must comply with HIPAA to ensure the privacy of their customers’ health information.
4. Children’s Online Privacy Protection Act (COPPA): COPPA is a federal law that regulates the collection of personal information from children under the age of 13. Financial firms that offer products or services to children must comply with COPPA and obtain parental consent before collecting personal information from children.
5. Electronic Communications Privacy Act (ECPA): The ECPA is a federal law that regulates the interception and disclosure of electronic communications. Financial firms must comply with ECPA to ensure the privacy of their customers’ electronic communications.

These are some of the key privacy laws in the United States that financial firms must be aware of. It’s important for financial firms to consult with a legal professional to ensure that their practices are in compliance with all applicable laws and regulations.

As a Canadian firm working in the US, what are the sovereignty rules I should be aware of?

As a Canadian financial firm operating in the United States, there are several sovereignty rules that you should be aware of to ensure compliance with both Canadian and US laws. Here are some of the key considerations:

Data privacy laws: Both Canada and the United States have laws that regulate the collection, use, and disclosure of personal information. Financial firms operating in both countries must comply with the privacy laws in each jurisdiction, including the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada and the Gramm-Leach-Bliley Act (GLBA) in the United States.

Cross-border data transfers: Financial firms must also be aware of restrictions on cross-border data transfers between Canada and the United States. Under Canadian privacy law, personal information cannot be transferred to countries that do not provide an adequate level of protection. The United States is not considered to provide an adequate level of protection under Canadian privacy law, so Canadian financial firms operating in the US must implement appropriate measures to protect personal information that is transferred across the border.

Compliance with US laws: In addition to complying with Canadian privacy laws, Canadian financial firms operating in the United States must also comply with US laws, such as the Fair Credit Reporting Act (FCRA) and the Electronic Communications Privacy Act (ECPA).

Regulatory oversight: Canadian financial firms operating in the United States must also be aware of the regulatory oversight in each jurisdiction. They must comply with the rules and regulations set by both Canadian and US regulatory authorities.

These are some of the key sovereignty rules that Canadian financial firms operating in the United States must be aware of. It’s important for these firms to consult with legal professionals in both countries to ensure compliance with all applicable laws and regulations.

Marketing Compliance with SEC and FINRA, rules around publishing testimonials, performance claims, and misleading or incomplete information.

In the United States, financial firms are subject to marketing compliance requirements set by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Here is what you need to know about marketing compliance with respect to publishing testimonials, performance claims, and misleading or incomplete information:

1. Testimonials: The use of testimonials in marketing materials is generally restricted by the SEC and FINRA. Financial firms cannot publish testimonials that are misleading or that create an unwarranted expectation of future performance. Testimonials must be representative of a typical customer experience, and any unusual or exceptional results must be clearly and prominently disclosed.
2. Performance Claims: Performance claims made in marketing materials must be supported by reliable data and must be accompanied by appropriate disclosures, such as a description of the period over which the results were achieved, the investment strategy used, and any material limitations or restrictions. Financial firms must avoid making performance claims that are misleading or that create an unwarranted expectation of future performance.
3. Misleading or Incomplete Information: Financial firms must not publish misleading or incomplete information in their marketing materials. This includes false or exaggerated claims, incomplete or selective data, or information that is presented in a manner that misleads or confuses potential customers. In addition, financial firms must avoid making false or misleading comparisons to other financial products or services.

These are some of the key considerations with respect to marketing compliance with the SEC and FINRA in the United States. It’s important for financial firms to work closely with legal and compliance professionals to ensure that their marketing materials comply with all applicable laws and regulations. Financial firms that violate SEC and FINRA marketing rules can face significant fines and other enforcement actions, so it’s critical to take these requirements seriously.

When Advertising to Investors in the United States

Financial firms advertising to investors in the United States must comply with various rules and regulations set by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Here are some key restrictions to be aware of when advertising to investors:

1. Performance Results: Financial firms cannot make false or misleading claims about the performance of their products or services in their advertising materials. They must include appropriate disclosures and disclaimers that provide a balanced view of the investment performance, and they must also comply with requirements for presenting performance results, such as using standardized performance metrics.
2. Testimonials: The use of testimonials in advertising materials is restricted by the SEC and FINRA. Testimonials must be representative of typical customer experiences and cannot be misleading. In addition, financial firms must clearly and prominently disclose any exceptional results or unusual circumstances.
3. Endorsements: Financial firms must also be mindful of restrictions on the use of endorsements in their advertising materials. Endorsements must be truthful and not misleading, and financial firms must disclose any material connections between the endorser and the financial firm.
4. Misleading or Incomplete Information: Financial firms must not publish misleading or incomplete information in their advertising materials. This includes false or exaggerated claims, incomplete or selective data, or information that is presented in a manner that misleads or confuses potential investors. In addition, financial firms must avoid making false or misleading comparisons to other financial products or services.

These are some of the key restrictions that financial firms advertising to investors in the United States must be aware of. It’s important for financial firms to work closely with legal and compliance professionals to ensure that their advertising materials comply with all applicable laws and regulations. Financial firms that violate SEC and FINRA advertising rules can face significant fines and other enforcement actions, so it’s critical to take these requirements seriously.

Website disclosure sample for a Financial Firm’s website based in the USA.

The following is a SAMPLE, and should not be used without revising under the advice of your legal council and compliance team.   The disclosures and terms of use of a financial firm’s website must comply with applicable laws in the USA and regulations, such as the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Electronic Fund Transfer Act (EFTA).

Website Disclaimer and Terms of Use

Welcome to our website. By accessing or using this website, you agree to be bound by the following terms and conditions. Please read them carefully.

1. Disclaimer of Warranties and Limitations of Liability

This website is provided on an “as is” and “as available” basis without warranties of any kind, either express or implied. We make no representations or warranties of any kind, express or implied, as to the operation of this website, or the information, content, materials, or products included on this website.

You agree that your use of this website is at your own risk. To the fullest extent permitted by law, we will not be liable for any damages of any kind arising from the use of this website, including, but not limited to, direct, indirect, incidental, punitive, and consequential damages.

1. Electronic Signatures and Electronic Fund Transfers

This website uses electronic signatures in accordance with the Electronic Signatures in Global and National Commerce Act (ESIGN). By using this website, you consent to the use of electronic signatures and agree to the terms and conditions set forth in this website.

Additionally, our website may allow you to initiate electronic fund transfers. By using this feature, you agree to comply with the terms and conditions of the Electronic Fund Transfer Act (EFTA).

2. No Investment Advice

The information and materials on this website are for informational purposes only and are not intended to provide investment advice. We do not make any representations or warranties as to the accuracy or completeness of any information on this website, and we assume no liability for any losses arising from the use of this information.

3. Changes to Terms and Conditions

We reserve the right to change these terms and conditions at any time. Your continued use of this website following the posting of any changes to these terms and conditions constitutes your acceptance of those changes.

4. Governing Law

These terms and conditions shall be governed by and construed in accordance with the laws of the United States. Any dispute arising under these terms and conditions shall be resolved exclusively in the courts of the United States.

Disclaimer: This website disclosure is intended to provide a general overview of the terms and conditions that apply to the use of this website. Financial firms should consult with legal and compliance professionals to ensure that their website disclosures and terms of use comply with all applicable laws and regulations.

Data Handling Disclosure

Here is a sample data handling disclosure for a financial firm’s website operating in the USA, including Google’s use of data for analytics.  Again, the following is a SAMPLE, and should not be used without revising under the advice of your legal council and compliance team.  

Data Handling Disclosure

1. Collection and Use of Personal Information

This website may collect personal information from visitors, such as name, email address, and other contact information. We use this information to provide you with the services and information you request, as well as to improve our website and services.

We may also use this information for marketing purposes, including sending you information about our products and services. You may opt-out of receiving marketing communications from us at any time.

2. Sharing of Personal Information

We will not sell, trade, or rent your personal information to third parties without your consent, except as required by law. We may share your information with third-party service providers, such as web hosts or payment processors, in order to provide the services you request.

3. Data Analytics

This website uses Google Analytics, a web analytics service provided by Google, Inc. (“Google”). Google Analytics uses “cookies” to collect and analyze information about your use of the website, including the number of visitors, the sources of traffic, and the pages viewed. This information is used to improve our website and provide a better user experience.

Google may also use this information for its own purposes, such as to improve its own services or for market research. You can opt-out of Google Analytics by installing the Google Analytics opt-out browser add-on.

4. Data Security

We take reasonable measures to protect the security of your personal information. However, no data transmission over the Internet can be guaranteed to be 100% secure. As a result, we cannot guarantee the security of any information you transmit to us.

5. Changes to this Data Handling Disclosure

We reserve the right to change this data handling disclosure at any time. Your continued use of this website following the posting of any changes to this data handling disclosure constitutes your acceptance of those changes.

Disclaimer: This data handling disclosure is intended to provide a general overview of our practices regarding the collection, use, and sharing of personal information on this website. Financial firms should consult with legal and compliance professionals to ensure that their data handling practices comply with all applicable laws and regulations.