Full text and statutory guidelines for the Financial Services Modernization Act (Gramm-Leach-Bliley Act)
Full text and statutory guidelines for the Financial Services Modernization Act (Gramm-Leach-Bliley Act)
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Privacy and Security 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.
Financial institutions covered by the Gramm-Leach-Bliley Act must tell their customers about their information-sharing practices and explain to customers their right to "opt out" if they don't want their information shared with certain third parties.
The Gramm-Leach-Bliley Act (GLB Act or GLBA), also known as the Financial Modernization Act of 1999, is a federal law enacted in the United States to control the ways financial institutions deal with the private information of individuals.
The Financial Services Modernization Act of 1999 is a law that serves to partially deregulate the financial industry. The law allows companies working in the financial sector to integrate their operations, invest in each other's businesses, and consolidate.
The Financial Privacy Rule. The Financial Privacy Rule is another name for the GLBA's requirement that financial institutions must give customers and consumers the right to opt out, or not allow, a financial institution to share the customer/consumer's information with nonaffiliated third parties prior to sharing it.
Privacy Rule: Ensuring the protection of consumers' personal financial information. Safeguards Rule: Requiring the establishment of security measures to prevent data breaches. Pretexting Provisions: Prohibiting deceptive methods of obtaining personal financial information.
The act was passed in late 1999 and allows banks to offer financial services previously forbidden by the Glass-Steagall Act. Under the GLBA, each manager or service-person is only allowed to sell or manage one type of financial product/instrument.