Gramm-Leach-Bliley Act

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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 ?
4 signed into law a highway authorization bill that includes an amendment to the Gramm-Leach-Bliley Act that positively impacts real estate appraisers.
Summary: For more than 15 years, the Gramm-Leach-Bliley Act (GLBA) has governed data security in the banking industry.
Confidential medical information, for example, is governed by the Health Insurance Portability and Accountability Act, while the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act protect the use and dissemination of other nonpublic, personal information.
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.
They won't have to send Gramm-Leach-Bliley Act privacy notices out this year.
Thanks to the Financial Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, consumers can request that personal financial information held by financial institutions, which include banks, securities firms, insurance companies, and companies providing financial products and services to customers, not be sold.
Eight federal regulators, on December 23, 2003, announced an advance notice of proposed rulemaking (ANPR) requesting public comment on ways to improve the privacy notices that financial institutions provide to consumers under the Gramm-Leach-Bliley Act (GLB Act).
district court upheld the law and dismissed the suit, saying that the 1999 Gramm-Leach-Bliley Act allows states to enact stricter rules.
The SEC published for comment proposed regulation B, which would implement provisions of the Gramm-Leach-Bliley Act of 1999 (GLBA) that delineate the securities activities in which banks may engage without registering as brokers under the Securities Exchange Act of 1934 (www.
District Court for the District of Columbia ruled that the Federal Trade Commission's decision to subject attorneys to the privacy provisions of the Gramm-Leach-Bliley Act was beyond its statutory authority and constituted arbitrary and capricious agency action.
Ruling on motions to dismiss by the FTC in suits brought by the ABA and the New York State Bar Association, the court held that Congress did not intend the privacy provisions of the Gramm-Leach-Bliley Act to apply to attorneys who provide legal services, noting in particular those who practice in the fields of real estate settlement, tax planning, and tax preparation.
The Gramm-Leach-Bliley Act protects the privacy of consumers by having institutions such as real estate companies that are "significantly involved in financial activities" disclose annually to clients how personal and confidential information is destroyed.