The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
What changes in banking regulation did the Gramm-Leach-Bliley Financial Services Modernization Act bring about why?
Passed by Congress in late 1999, the Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act, deregulated the financial services industry by removing barriers that separated commercial banking from investment banking, merchant banking and insurance underwriting.
Who enforces the Gramm-Leach-Bliley Act?
The FTC
The FTC is one of the federal agencies that enforces provisions of Gramm-Leach Bliley, and the law covers not only banks, but also securities firms, and insurance companies, and companies providing many other types of financial products and services.
What title is the Gramm Leach Bliley Act?
Title V
Title V, subtitle A, of this Act (15 U.S.C. § 6801 et seq.) requires the FTC, along with the Federal banking agencies and other regulators, to issue regulations ensuring that financial institutions protect the privacy of consumers’ personal financial information.
What is the GLBA Safeguards Rule?
The Safeguards Rule requires financial institutions to store sensitive customer information securely and ensure its secure transmission, as well as maintain programs and implement audit procedures that prevent unauthorized access and improper disclosure.
Are insurance companies covered by GLBA?
The Gramm-Leach-Bliley Act generally prohibits insurance underwriting activities from being conducted by a subsidiary of a national bank.
Who is the Gramm-Leach-Bliley Act enforced by?
the FTC
The GLBA is enforced by the FTC, the federal banking agencies, and other federal regulatory authorities, as well as state insurance oversight agencies.
Who does the safeguards rule apply to?
In fact, the Safeguards Rule applies to all businesses, regardless of size, that are “significantly engaged” in providing financial products or services. This includes, for example, mortgage brokers, payday lenders, nonbank lenders, real estate appraisers, and professional tax preparers.
What information is protected under GLBA?
The personal information covered by the GLBA is termed “nonpublic personal information,” which means “personally identifiable financial information — provided by a consumer to a financial institution; resulting from any transaction with the consumer or any service performed for the consumer; or otherwise obtained by …
What info is protected by GLBA?
Financial Privacy Rule: A company that is either a “financial institution” or receives “nonpublic personal information (NPI)” regarding consumers from a financial institution must adhere to the privacy rule of the GLBA. This rule covers most personal information (name, date of birth, Social Security number, etc.)
