Today, eight federal financial regulatory agencies issued a final Gramm-Leach-Bliley Act ("GLBA") model privacy notice. The final model notice incorporates financial institutions’ required disclosures pursuant to Section 503 of the GLBA. The GLBA requires, in relevant part, that financial institutions provide consumers with information regarding their collection and sharing of nonpublic personal information. Financial institutions that adopt the final model notice will be deemed in compliance with the GLBA notice requirements. The final model notice is the result of the agencies’ consumer research and testing. It is touted as succinct, easy to use and consumer friendly. The final model notice will take effect 30 days after publication in the Federal Register. Publication is anticipated shortly.
Issuance of this model notice follows the enactment, in October 2006, of the Financial Services Regulatory Relief Act (“Relief Act”). Section 728 of the Relief Act directs the federal financial services agencies to jointly develop a model privacy notice that incorporates all of GLBA-mandated disclosures to consumers. Section 728 also provides a safe harbor. Financial services institutions that elect to use the model form will be deemed in compliance with the GLBA notice requirements. In response to the Relief Act requirements, on March 29, 2007, the financial services agencies published a proposed model privacy notice. The final model privacy notice is substantially similar to the proposed model with certain revisions based on comments submitted to the agencies and consumer testing.
For further information regarding the final model privacy notice please refer to our earlier post.