I Act as a Custodian for Individual Retirement Arrangements (“IRAs”). Are the Individuals who Own the IRAs my Customers?

Compliance > Privacy
Q. I act as a custodian for Individual Retirement Arrangements (“IRAs”). Are the individuals who own the IRAs my customers?
 
A. Yes. An individual who establishes an IRA account for which you act as a custodian has obtained a financial product or service that is to be used primarily for personal, family, or household purposes; therefore, he or she is a consumer. When an individual selects you to act as custodian for his or her IRA, the individual enters into a continuing relationship with you and becomes your customer under the Privacy Rule. By contrast, an individual who is a participant or a beneficiary of an employee benefit plan that you sponsor or for which you act as trustee or fiduciary is not your customer because your relationship in that case is with the plan.

This can be found in FAQ A.4. of the Regulation P FAQs.  The FAQs can be found at http://www.federalreserve.gov/regulations/cg/faq.pdf.

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