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

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

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

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

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

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

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

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.

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

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

Certified Information Privacy Professional Practice Test

Certified Information Privacy Professional Practice Test

CIPP Financial Privacy (GLBA, FCRA, and FACTA)