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Can I collect financial information from participants in Hawaii? What are the requirements?

Collecting Financial Information in Hawaii

If you are planning to collect financial information from participants in Hawaii, you must comply with the state’s financial reporting and privacy laws.

Financial Reporting Requirements

According to HIAR 16-39-437 [1.2], every registered investment adviser in Hawaii must file an annual report within 90 calendar days following the end of the investment adviser’s fiscal year. If you maintain your principal place of business in Hawaii, you must file audited financial statements. However, if you do not have custody or discretionary authority over client funds, you may file financial statements verified by a duly authorized officer of the investment adviser and notarized. If you maintain your principal place of business in a state other than Hawaii, you must file with the commissioner a copy of the most recent financial report or statement, if any, that you have filed with the securities commissioner in the state in which you maintain your principal place of business. If you are not registered in the state where you maintain your principal place of business or are not in compliance with that state’s financial reporting requirements, you must file financial statements that comply with Hawaii’s requirements.

Privacy Requirements

If you receive nonpublic personal financial information from a nonaffiliated financial institution under an exception in section 431:3A-402 or 431:3A-403, you must comply with the limits on redisclosure and reuse of nonpublic personal financial information outlined in HIRS 431:3A-302 [2.1]. If you receive nonpublic personal financial information from a nonaffiliated financial institution other than under an exception in section 431:3A-402 or 431:3A-403, you may only disclose the information to the affiliates of the financial institution from which you received the information, your affiliates who may disclose the information only to the extent that you may disclose the information, and any other person if the disclosure would be lawful if made directly to that person by the financial institution from which you received the information.

If you provide privacy notices to consumers, you must include the information outlined in HIRS 431:3A-203 [2.1]. This includes the categories of nonpublic personal financial information that you collect and disclose, the categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal financial information, and an explanation of the consumer’s right to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties.

Professional Solicitor Financial Reports

If you are a professional solicitor collecting financial information for a charitable solicitation campaign, you must file a financial report with the attorney general for any charitable solicitation campaign, including gross revenue from Hawaii donors and national gross revenue and an itemization of all expenses incurred on a form prescribed by the attorney general no more than ninety days after the end of the solicitation campaign and, for solicitation campaigns lasting more than one year, within ninety days after each anniversary of the commencement of the solicitation campaign and within ninety days after the end of the solicitation campaign. [3.2]

Conclusion

To summarize, if you plan to collect financial information from participants in Hawaii, you must comply with the state’s financial reporting and privacy laws. You must file an annual report within 90 calendar days following the end of your fiscal year and comply with the limits on redisclosure and reuse of nonpublic personal financial information. If you provide privacy notices to consumers, you must include specific information in those notices. If you are a professional solicitor collecting financial information for a charitable solicitation campaign, you must file a financial report with the attorney general.

Source(s):
Jurisdiction

Hawaii