Corrections or additions?
These articles by Emily Heine and Catherine Moscarello were
prepared for the October 4, 2000 edition of
U.S. 1 Newspaper. All rights reserved.
Look Out for GLOB
Bankers and financial consultants, take note. By next
July you will need to be even more careful about disclosing your
clients’
personal information.
The Gramm-Leach-Bliley Act, signed by President Clinton last November,
was widely hailed because it repealed the Glass-Steagall Act, which
has kept banks, securities firms and insurance companies apart since
1930.
Title V of Gramm-Leach-Bliley (irreverently known as GLOB) is another
matter. It adds tough new regulations to protect consumers’ financial
privacy, and these are having a huge impact on the banking community,
says Dennis Casale of Jamieson Moore Peskin & Spicer, the Alexander
Park-based law firm.
“Federal banking agencies have adopted regulations that will
affect
every bank — and every consumer — by July 1, 2001,” he
explains. Bankers who are struggling to comply with the nitty-gritty
of Title V can get help from Casale and Leonard A. Bernstein
of Reed Smith Shaw & McClay at a conference sponsored by the New
Jersey
Bankers Association and the New Jersey League — Community &
Savings
Bankers. “Financial Privacy Regulations: How Title V of
Gramm-Leach-Bliley
Will Affect You” will be held at Forsgate Country Club on
Thursday,
October 5, at 8:30 a.m.. Cost: $150. Call Peggy O’Brien (609-924-5550,
extension 503).
To be discussed: The definition of a “financial institution,”
rules concerning nonpublic personal information, and privacy notices,
including “opt out” notices and exceptions. Also on the
agenda:
details on state law, enforcement, and penalties.
Gramm-Leach-Bliley, also known as the “financial modernization
act,” places far-reaching restrictions on information management
and information-sharing practices among financial institutions.
Besides
banks, the regulations apply broadly to savings associations, credit
unions, broker-dealers, investment companies, investment advisers
and insurance companies. They even apply to non-bank financial
institutions
that aren’t affiliated with a bank.
The June 1 Federal Register devoted 74 pages to what financial
institutions
must do to safeguard customer information and comply with Title V.
It even explained precisely what the act means by “customer”
(a consumer who has a relationship with a bank); “nonpublic
customer
information” (information that can’t easily be obtained from
government
records, widely distributed media, or disclosures required by law);
and “nonaffiliated third parties” (parties that aren’t paid
by the bank directly or indirectly, e.g., via a bank holding company).
Under Title V all financial institutions must disclose detailed
privacy
policies to their customers at the time the account is established
and annually after that. They must tell customers the following:
What types of information are being collected.The categories of institutions and persons with whominformationis being shared.Practices for sharing information within a corporatefamily.Before certain information is shared, financial institutionsmust offer consumers the opportunity to opt out of such sharing andexplain how to do so.In particular, financial institutions cannot disclose an account orcredit card number to a nonaffiliated third party for use in directmarketing to consumers.The act also makes it a felony for any person to obtain or attemptto obtain any customer information from a financial institution byuse of “false, fictitious or fraudulent statements” or”fraudulentlyobtained or fictitious documents.”Small wonder that bankers everywhere are hastening to develop aninformationsecurity program that identifies risks, provides a written plan,implementsand tests the plan, and provides adjustments as needed.A policy and a plan aren’t the end of the matter. “Once they havewritten their policies on information privacy, banks have to makesure their practices match them,” Casale says. “The policymay comply perfectly with the new regulations but a division ordepartmentcan get into trouble by not following it to the letter.”Small slip-ups could mean big trouble for banks next year, but Casaleisn’t worried for them. “Responsible use of private informationis a high priority with banks,” he points out. Although they mayneed help with details, “most banks are light years ahead of otherbusinesses in protecting consumers’ private information.”— Emily HeineTop Of PageArt as BusinessQuick! Think of a noun that goes with”starving.”Artist, right? But it doesn’t necessarily have to be that way, saysGail Cohen, director of the Trenton Arts Connection (E-mail:TArtsC@ aol.com). Given the formidable task of organizing andmentoringa group of individuals with that one hallmark, individuality, Cohenmaintains that art has to be approached as a business, true to itsown rhythms and structure.”I have an artist friend who has been struggling on his own forthe past 25 years while making a living from his art,” she says.”He has marked, photographed, journaled, and categorized all ofhis works and personally knows all the owners of his art. This isnot just a whimsical attempt at creative expression or a stab atimmortality.He is thoroughly committed to his craft.”Further, the Trenton business community can and does look to the artsto enhance, revitalize, and develop neighborhoods and areas in thecity. Art sells. And a healthy arts community sells the city thatnourishes it. A study of economic impact done by the State Councilon the Arts attests to the fact that investment in the arts createsreinvestment two to three times the amount of the initial investment.To help promote this concept, this fall TAC is sponsoring “ArtsTransforming Trenton’s Image,” a series of workshops for artists,arts organizations and developers. The second in the series,”TreatingYour Art as a Business,” concludes the numerous events makingup Small Business Week on Saturday, October 7, from 9 a.m. to 4 p.m.at the Urban Word Cafe, 449 South Broad Street. It is free butregistrationis required by calling 609-695-8155. A cash lunch will be available.Trying to assess the depth and breadth of the Trenton arts communityis difficult because so many artists involve themselves in so manydifferent mediums. “It’s a very fragmented group,” says Cohen,”and we’ve only just begun to convince artists of the necessityof pulling together to achieve our goals. In the past, artists foundthemselves competing against one another for funding or politicalclout.” As a business group, artists are largely overlooked bymarketing agencies that often focus on bigger clients with moreconventionalproducts or services.One goal of TAC is to give artists technical support in”maximizingthe business potential of their work.” The workshop will showhow to intensify guerrilla marketing, examine legal issues, anddevelopportfolios.Along with Cohen, presenters for the workshop are Theresa Peelerd,chair of the Pennsylvania Bar Association’s Sports, Entertainmentand Art Law committee; Susan Schear, president of ArtIsIn,a comprehensive business development and management service for visualand performing artists; and Barbara Swanda, executive directorof Artworks, a nonprofit, visual arts school and gallery located inTrenton.Cohen’s experience with small business development and retention grewfrom her role as executive director of Main Street Wildwood Inc.There,in close partnership with the business community, she developed acomprehensive plan for downtown development. Cohen received her BAin fine arts from Carnegie Mellon and masters from Yale University.She draws upon an extensive background in the arts as a theater troupemanager and entrepreneur/publisher. A former real estate professionaland a community activist, she is passionate about the importance ofartists in connection with the economic vitality of the region.Says Cohen: “Every working person has his own expression of doingbusiness, whether he’s an artist or not. The artist just usesdifferenttools to make a living.”— Catherine MoscarelloTop Of PageBiz WinnersTracey Syphax, CEO of Capitol City Contracting,and Mark Feffer, president and publisher of Tramp Steamer Media,have been named by Douglas H. Palmer, mayor of Trenton, as winnersof the Mayor’s Small Business of the Year Award.Syphax, CEO of the long-established construction company, serves onthe advisory board for the Minding Your Own Business Program at theArthur J. Holland Middle School, is a member of the MetropolitanTrentonAfrican American Chamber of Commerce, and serves on the board of theMercer County Business Association.Feffer, who founded Tramp Streamer Media in 1997, has had more than15 years of experience in multi-media products and programs, nowserveson the board of trustees of Passage Theater Company, and is thepresidentof the Lions Club in Lawrenceville.Previous StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
