Commissioner considers jurisdiction over use of personal information by bank subsidiary
PIPEDA Case Summary #2002-109
[Section 30]
Complaint
An individual alleged that an investment and brokerage service, a subsidiary of a bank, discloses the personal information of its clients to the U.S. Internal Revenue Service (IRS), without their consent and for consideration.
Summary of Investigation
The investigation was limited to the Commissioner's determination of whether or not he had jurisdiction in the matter.
Commissioner's Findings
Issued December 19, 2002
Jurisdiction: As of January 1, 2001, the Personal Information Protection and Electronic Documents Act (the Act) applies to any federal work, undertaking, or business and also to any organization that discloses personal information outside the province for consideration.
Under the Act, any bank listed under Schedules 1 or 2 of the Bank Act is a federal work, undertaking or business. In this case, however, the organization, though a subsidiary of a bank, operates as a separate and distinct legal entity and is provincially regulated. Therefore, it is not currently subject to the Act.
The Commissioner considered the allegation that the organization disclosed personal information across the international border for consideration. On the evidence he was satisfied that the organization did not disclose personal information to the IRS, for consideration or otherwise.
The Commissioner therefore concluded that he lacked jurisdiction to investigate this matter.
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