It can apply only if the firm maintains customer information concerning fewer than 5,000 consumers, and it removes only four listed duties. Citation: 16 CFR 314.6.
Primary source: 16 CFR 314.2(h)(2)(xiii)
Does the under-5,000-consumer exemption apply to a finder?
Details
Lead-generation volume can make the 5,000-consumer threshold arrive quickly. If below it, the firm still needs the core written security program and safeguards. The firm should document the count method, because old files, leads, former customers, and retained records can matter.
Primary source: 16 CFR 314.2(h)(2)(xiii).
FAQ
Does the under-5,000-consumer exemption apply to a finder?
It can apply only if the firm maintains customer information concerning fewer than 5,000 consumers, and it removes only four listed duties. Citation: 16 CFR 314.6.
What is the data-flow issue for a finder?
Finder data may live in lead forms, marketplace profiles, referral databases, eligibility screens, CRM records, email introductions, and analytics exports. The WISP should distinguish ordinary marketing leads from consumer financial information collected to make a financial-service match.
Is this legal advice?
No. It is source-cited educational content for a template product, not legal advice.