What is required when a financial institution shares personal information with joint marketers?

When a financial institution shares personal information with joint marketers, it is essential that the third party is contractually bound to protect that information. This requirement ensures that the joint marketers adhere to privacy compliance standards and handle the shared data appropriately. The contractual agreement stipulates the obligations regarding the use of the shared personal information, safeguarding customer privacy and ensuring that the information is not misused.

This legal framework is crucial because it helps the financial institution maintain control over the handling and privacy of customer data while allowing some level of collaboration and marketing outreach. The contract typically includes clauses that outline how the information can be used, how it should be protected, and the consequences of any breach, thereby fostering responsibility in the data handling process.

Other options may imply various requirements, such as public disclosure or media notification, which are not standard practices in privacy compliance when sharing data with marketers. Furthermore, while customer consent is critical in many contexts, the focus in this scenario is on the contractual obligations of the joint marketers rather than direct customer approval alone.