Financial Privacy (GLBA, FCRA, and FACTA) Flashcards

Under the Gramm-Leach-Bliley Act (GLBA), what must financial institutions provide to customers at the time of establishing a customer relationship?

Answer: An initial privacy notice

GLBA requires financial institutions to deliver an initial privacy notice to customers at the time the customer relationship is established.

Which of the following is excluded from the definition of 'nonpublic personal information' (NPI) under GLBA?

Answer: Publicly available information from government records

GLBA explicitly excludes publicly available information from government records from the definition of NPI, since it is already accessible to the general public.

Which federal agency has primary enforcement authority over national banks under GLBA's privacy provisions?

Answer: Office of the Comptroller of the Currency (OCC)

The OCC has primary supervisory and enforcement authority over national banks, including compliance with GLBA privacy requirements.

The GLBA opt-out right allows consumers to prevent a financial institution from sharing their NPI with which type of party?

Answer: Unaffiliated third parties not covered by a statutory exception

The GLBA opt-out right specifically enables consumers to restrict sharing of NPI with unaffiliated third parties that do not fall under statutory exceptions such as the joint marketing agreement exception.

Which GLBA exception permits financial institutions to share NPI with unaffiliated third parties without offering consumers an opt-out right?

Answer: Joint marketing agreement exception

The joint marketing agreement exception allows sharing NPI with unaffiliated companies for joint product or service marketing purposes without triggering the opt-out requirement.

The GLBA Safeguards Rule primarily requires financial institutions to:

Answer: Develop, implement, and maintain a comprehensive information security program

The Safeguards Rule mandates that financial institutions establish and maintain a written comprehensive information security program appropriate to the size and complexity of the institution.

Under GLBA, which entities qualify as 'financial institutions' subject to its privacy provisions?

Answer: Businesses significantly engaged in financial activities

GLBA defines financial institutions broadly to include any business significantly engaged in financial activities, encompassing banks, mortgage lenders, insurers, investment advisors, and similar entities.