Gramm-Leach-Bliley Act

(redirected from GLB Act)

Financial Services Modernization Act of 1999

Legislation in the United States that deregulated much of the American financial industry. It permitted banks, insurance companies and investment banks to offer each other's products for the first time since the Great Depression. That is, the same companies could offer insurance, brokerage services and/or regular banking services. The legislation resulted in a great deal of consolidation in the financial sector. Critics maintain that it caused banks to take on unnecessary risks that led to the late 2000s recession. It is more commonly called the Gramm-Leach-Bliley Act after its principal authors.

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.

References in periodicals archive ?
The end result, the GLB Act, replaced the blanket exception for banks from the definitions of "broker" and "dealer" with fifteen exceptions tailored to allow the continuation of key bank securities activities.
The GLB Act covers the disclosure of client data, pretexting (gathering information under false pretenses), and the protection of client data.
This notification reflects that Fifth Third and each of its subsidiary banks meets both the well-capitalized and well-managed criteria under the GLB Act.
The GLB Act amended the Bank Holding Company Act to allow a bank holding company or foreign bank that qualifies as a financial holding company to engage in, and affiliate with companies engaged in, a broad range of financial activities.
Toward this end, the GLB Act contains several provisions in its authorization of merchant banking activities that are designed to distinguish merchant banking investments from the more general mixing of banking and commerce.
The segregation of duties requirement in many regulations (SOX, GLB Act, HIPAA) is forcing organizations to define a meaningful and manageable role infrastructure.
Heritage also had electronic connections to many third parties, and, as required by the GLB Act, these third parties had to be included in the security evaluation and solution.
The agencies believe that financial institution customers will benefit by receiving GLB Act privacy notices that accurately describe their institution's information practices before the mandatory GLB Act privacy compliance date, July 1, 2001.
Heritage Trust Federal Credit Union, a South Carolina financial institution, utilized Dimension Data's Surveyor for Security to establish a remediation roadmap to ensure its compliance with the GLB Act.
The GLB Act amended Regulation E by requiring disclosure of fees imposed by ATM operators (sometimes referred to as "surcharges").
This notification reflects that PNC now meets both the well-capitalized and well-managed criteria under the GLB act.
The GLB Act provides specific supervisory guidance pertaining to the breadth of BHC inspections, as well as inspections of their subsidiaries.