Gramm-Leach-Bliley Summary
TITLE V -- Privacy
- Requires clear disclosure by all financial institutions
of their privacy policy regarding the sharing of non-public personal
information with both affiliates and third parties.
- Requires a notice to consumers and an opportunity to
"opt-out" of sharing of non-public personal information with nonaffiliated
third parties subject to certain limited exceptions.
- Addresses a potential imbalance between the treatment
of large financial services conglomerates and small banks by including an
exception, subject to strict controls, for joint marketing arrangements
between financial institutions.
- Clarifies that the disclosure of a financial
institution's privacy policy is required to take place at the time of
establishing a customer relationship with a consumer and not less than
annually during the continuation of such relationship.
- Provides for a separate rather than joint rulemaking to
carry out the purposes of the subtitle; the relevant agencies are directed,
however, to consult and coordinate with one another for purposes of assuring
to the maximum extent possible that the regulations that each prescribes are
consistent and comparable with those prescribed by the other agencies.
- Allows the functional regulators sufficient flexibility
to prescribe necessary exceptions and clarifications to the prohibitions and
requirements of section 502.
- Clarifies that the remedies described in section 505
are the exclusive remedies for violations of the subtitle.
- Clarifies that nothing in this title is intended to
modify, limit, or supersede the operation of the Fair Credit Reporting Act.
- Extends the time period for completion of a study on
financial institutions' information-sharing practices from 6 to 18 months from
date of enactment.
- Requires that rules for the disclosure of institutions'
privacy policies must be issued by regulators within 6 months of the date of
enactment. The rules will become effective 6 months after they are required to
be prescribed unless the regulators specify a later date.
- Assigns authority for enforcing the subtitle's
provisions to the Federal Trade Commission and the Federal banking agencies,
the National Credit Union Administration, the Securities and Exchange
Commission, according to their respective jurisdictions, and provides for
enforcement of the subtitle by the States.
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September 13, 2008