CIPP Financial Privacy (GLBA, FCRA, and FACTA)

Question 1

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

Accepted Answer

An initial privacy notice

Answer

A data retention schedule

Answer

A data breach notification

Answer

A written consent form for all data sharing

Question 2

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

Accepted Answer

Publicly available information from government records

Answer

Social Security numbers

Answer

Account balances

Answer

Transaction histories

Question 3

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

Accepted Answer

Office of the Comptroller of the Currency (OCC)

Answer

Federal Trade Commission (FTC)

Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Securities and Exchange Commission (SEC)

Question 4

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

Accepted Answer

Unaffiliated third parties not covered by a statutory exception

Answer

Affiliates under a common ownership structure

Answer

Government agencies requesting information

Answer

Credit bureaus compiling consumer reports

Question 5

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

Accepted Answer

Joint marketing agreement exception

Answer

General marketing exception

Answer

Customer analytics exception

Answer

Promotional partners exception

Question 6

The GLBA Safeguards Rule primarily requires financial institutions to:

Accepted Answer

Develop, implement, and maintain a comprehensive information security program

Answer

Encrypt all data at rest using AES-256

Answer

Report security incidents to the FTC within 72 hours

Answer

Conduct annual penetration testing by certified third parties

Question 7

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

Accepted Answer

Businesses significantly engaged in financial activities

Answer

Only federally chartered banks and credit unions

Answer

Only entities registered with the SEC

Answer

Only publicly traded financial companies