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Gramm-Leach-Bliley Act

   Also found in: Wikipedia 0.02 sec.
Gramm-Leach-Bliley Act

Contains privacy provisions regarding consumers' financial information.Financial institutions are required to provide information to their customers regarding information-gathering and information-sharing practices.Consumers may opt out if they do not want their information shared with nonaffiliated third parties.



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The Gramm-Leach-Bliley Act requires financial service providers--including those providing federal or state personal tax returns, or financial planning--to inform their nonbusiness clients of its privacy policies.
Melancon said that the AICPA had worked with lawmakers since enactment of the Gramm-Leach-Bliley Act to achieve the change, which was possible because CPAs are certified or licensed by state boards of accountancy and are already subject to state laws and regulations that prohibit disclosure of nonpublic personal information without the expressed consent of the client.
The SEC issued an order extending until September 30, 2005, the date by which banks must comply with certain broker registration requirements of the Gramm-Leach-Bliley Act, which repealed a provision of the Securities Exchange Act of 1934 that had allowed such institutions to engage in securities activities without registering as brokers or dealers (www.
 
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