What is the main purpose of the Gramm-Leach-Bliley Act Privacy Rule?
INTRODUCTION. The Gramm-Leach-Bliley Act seeks to protect consumer financial privacy. Its provisions limit when a “financial institution” may disclose a consumer’s “nonpublic personal information” to nonaffiliated third parties.
Why was the GLBA created?
Since many regulations have been instituted since the 1930s to protect bank depositors, GLBA was created to allow these financial industry participants to offer more services. GLBA was passed on the heels of commercial bank Citicorp’s merger with the insurance firm Travelers Group.
What are the 3 types of privacy notices required under the GLBA?
There are three types of privacy notices defined in the regulations: an initial notice, an annual notice, and a revised notice. The regulation specifies when and to whom a bank is required to give each type of privacy notification.
What is the GLBA Safeguards Rule?
The GLBA requires that financial institutions act to ensure the confidentiality and security of customers’ “nonpublic personal information,” or NPI. The Safeguards Rule states that financial institutions must create a written information security plan describing the program to protect their customers’ information.
What is the GLBA Privacy Rule?
What is the Gramm-Leach-Bliley Act quizlet?
Gramm-Leach-Bliley Act. ensure that financial institutions, including mortgage brokers and lenders, protect nonpublic personal information of consumers.
Which industry is most impacted by the Gramm Leach Bliley Act?
financial services industry
We find that the law has a differential impact across the financial services industry. All three industries have gained due to this law with commercial banks benefiting most, followed by the insurance industry.
What does the Financial Privacy Rule regulate?
Under the law, agencies enforce the Financial Privacy Rule, which governs how financial institutions can collect and disclose customers’ personal financial information; the Safeguards Rule, which requires all financial institutions to maintain safeguards to protect customer information; and another provision designed …
What was the Gramm Leach Bliley Act of 1999?
The Gramm–Leach–Bliley Act ( GLBA ), also known as the Financial Services Modernization Act of 1999, ( Pub.L. 106–102, 113 Stat. 1338, enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in…
How is a consumer defined in the Gramm Leach Bliley Act?
Consumer vs. customer defined The Gramm–Leach–Bliley Act defines a “consumer” as “an individual who obtains, from a financial institution, financial products or services which are to be used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.” (See 15 U.S.C. § 6809 (9).)
Who was president when the GLBA was passed?
The Gramm-Leach-Bliley Act of 1999 (GLBA) was a bi-partisan regulation under President Bill Clinton, passed by Congress on November 12, 1999. The GLBA was an attempt to update and modernize the…
Why was the Glass Steagall Act of 1999 created?
BREAKING DOWN The Gramm-Leach-Bliley Act of 1999 (GLBA) Due to the remarkable losses incurred as a result of 1929’s Black Tuesday and Thursday, the Glass-Steagall Act was originally created to protect bank depositors from additional exposure to risk, associated with stock market volatility.