 |
 |
 |
 |
 |
Policy
Shepherd Kaplan is committed to preserving client privacy, and therefore complies with SEC Regulation S-P (GLBA), which requires registered advisers to adopt policies and procedures to protect the “nonpublic personal information” of current and former clients, and to disclose the policy to such persons. Nonpublic personal information includes nonpublic “personally identifiable financial information” plus any list, description or grouping of customers that is derived from nonpublic personally identifiable financial information. Such information may include personal financial and account information, information relating to services performed for or transactions entered into on behalf of clients, advice provided by Shepherd Kaplan LLC to clients, and data or analyses derived from such nonpublic personal information. Shepherd Kaplan LLC must also comply with the California Financial Information Privacy Act (SB1).
Background
The purpose of these privacy policies and procedures is to provide administrative, technical and physical safeguards which assist employees in maintaining the confidentiality of nonpublic personal information collected from the clients of an investment adviser. All nonpublic information, whether relating to an adviser's current or former clients, is subject to these privacy policies and procedures. Any doubts about the confidentiality of client information must be resolved in favor of confidentiality.
Responsibility
Marcus Hunter, or a designated individual, or officer, is responsible for reviewing, maintaining and enforcing these policies and procedures to ensure Shepherd Kaplan LLC's client privacy goals and objectives are met and compliance with applicable federal and state laws and regulations. Marcus Hunter may recommend disciplinary or other action as appropriate. Marcus Hunter is also responsible for distributing these policies and procedures to employees and conducting appropriate employee training to ensure employee adherence to these policies and procedures.
Procedure
Shepherd Kaplan LLC has adopted the following procedures to insure the firm's policy is observed, implemented properly and amended or updated, as appropriate:
Non-Disclosure of Client Information
Shepherd Kaplan LLC maintains safeguards to comply with federal and state standards to guard each client's nonpublic personal information. Shepherd Kaplan LLC does not share nonpublic personal information with any nonaffiliated third parties, except in the following circumstances:
- As necessary to provide the services that the client has requested or authorized, or to maintain and service the client's account;
- As required by regulatory authorities or law enforcement officials who have jurisdiction over Shepherd Kaplan LLC, or as otherwise required by any applicable law; and
- To the extent reasonably necessary to prevent fraud and unauthorized transactions.
Employees are prohibited, either during or after termination of their employment, from disclosing nonpublic personal information to any person or entity outside Shepherd Kaplan LLC, including family members, except under the circumstances described above. An employee is permitted to disclose nonpublic personal information only to such other employees who need to have access to such information to deliver services to the client.
SK does not disclose any client information for outside marketing, or non-affiliated business purposes.
Safeguarding and Disposal of Client Information
Shepherd Kaplan LLC restricts access to nonpublic personal information to those employees who need to know such information to provide services to our clients.
Any employee who is authorized to have access to nonpublic personal information is required to keep such information secure. Any conversations involving non public personal information must be conducted by employees in private, and care must be taken to avoid any unauthorized persons overhearing or intercepting such conversations.
Safeguarding standards encompass all aspects of the Shepherd Kaplan LLC that affect security. This includes not just computer security standards but also such areas as physical security and personnel procedures. Safeguarding standards are:
- Access controls on customer information systems (e.g. requiring employee use of user passwords to log-on to computers);
- Access restrictions at physical locations containing customer information permitting access to only authorized individuals (e.g. Alarm and an ID badge to gain access to the floor);
- Dual control procedures, segregation of duties, and employee background checks for employees with responsibilities for or access to customer information (e.g. require data entered and reviewed for accuracy by personnel not involved in its authorization);
- Procedures to detect actual and attempted attacks on or intrusions into customer information systems (e.g. Internal log of systems changes and systematic test of system security);
- Measures to protect against destruction, loss, or damage of customer information due to potential environmental hazards, such as fire and water damage or technological failures (e.g. backup of site mission critical data off site to ensure proper recovery, and a fire extinguisher in the server room).
Any employee who is authorized to possess non-public client information for a business purpose is required to take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal:
- Shredding papers containing client non-public information;
- Maintenance of mission-critical system data off-site for a minimum of 5 years.
Collection of Client Personal Information
SK collects personal information in the following circumstances:
-
Client Enrollment
We collect information when you open an account. The information we collect may include your name, address, phone number, email address, Social Security number and date of birth, type of employment, photo id, as well as details about your investments. -
Client Verification Through Third-party information providers
We may collect information about you from information services and consumer reporting agencies to verify your identity, employment or other pertinent financial information, or to better understand your financial needs. -
Client Service and Support
Once you have opened an account, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested. -
Client Website Use
When you visit our website, our computer may use devices known as "cookies," graphic interchange format files (GIFs), or other similar Web tools to enhance your Web experience. These tools enable us to recognize you when you return to our site, maintain your Web session while you browse, as well as help us provide you with a better, more personalized experience at SK. Our website uses the latest security protocols and is designed to protect SK from external intrusion as well as the clients who visit our website.
Privacy Notices
Shepherd Kaplan LLC will provide each client with initial notice of the firm's policy when the client relationship is established. Shepherd Kaplan LLC shall also provide each such client with a new notice of the firm’s privacy policies at least annually in the April billing mailing. If Shepherd Kaplan LLC shares nonpublic personal information relating to a non-California client (or former client) with an nonaffiliated company under circumstances not covered by an exception under Regulation S-P, the firm will deliver to each affected consumer an opportunity to opt out of such information sharing. If Shepherd Kaplan LLC shares nonpublic personal information relating to a California client (or former client) with a non affiliated company under circumstances not covered by an exception under SB1, the firm will deliver to each affected consumer an opportunity to opt in regarding such information sharing. If, at any time, Shepherd Kaplan LLC adopts material changes to its privacy policies, the firm shall provide each client with a revised notice reflecting the new privacy policies. The Compliance Officer is responsible for ensuring that required notices are distributed to the Shepherd Kaplan LLC's clients.