What did the 1999 Gramm-Leach-Bliley Act do?
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
What did the 1999 Gramm-Leach-Bliley Act overturn?
The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, was passed in November 1999. The law repealed the Glass-Steagall Act of 1933, which limited securities activities within commercial banks and interactions between commercial banks and securities firms.
What are the two main rules of the GLBA?
The GLBA requires companies that qualify as “financial institutions” to take several affirmative steps in order to prevent the unauthorized collection, use, and disclosure of NPI. It imposes these obligations under two “Rules”: (i) the Privacy Rule, and (ii) the Safeguards Rule.
What are the three sections of Gramm-Leach-Bliley Act?
The Act consists of three sections: The Financial Privacy Rule, which regulates the collection and disclosure of private financial information; the Safeguards Rule, which stipulates that financial institutions must implement security programs to protect such information; and the Pretexting provisions, which prohibit …
Which of the following best describes the Gramm-Leach-Bliley Act?
Which of the following best describes the Gramm-Leach-Bliley Act? The Gramm-Leach-Bliley Act requires financial institutions to ensure the security and confidentiality of customer data.
Which of the following describes the purpose of the Gramm-Leach-Bliley Act?
The GLBA’s purpose was to remove legal barriers preventing financial institutions from providing banking, investment and insurance services together.
What did the Gramm-Leach-Bliley Act repeal?
The Financial Services Modernization Act of 1999, otherwise known as the Gramm-Leach-Bliley Act (“GLBA”), repealed banking regulations from the 1930s – the Glass-Steagall (1933) and the Bank Holding Company Act (1956).
What is the main purpose of the Gramm-Leach-Bliley Act quizlet?
What does the Gramm-Leach-Bliley Act protect consumers against?
INTRODUCTION. The Gramm-Leach-Bliley Act seeks to protect consumer financial privacy. Its provisions limit when a “financial institution” may disclose a consumer’s “nonpublic personal information” to nonaffiliated third parties.
What are the penalties for violating GLBA?
Under GLBA, penalties for non-compliance can include fines of up to $100,000 per violation, with fines for officers and directors of up to $10,000 per violation. And if that wasn’t enough, the provisions include criminal penalties of up to five years in prison, and the revocation of licenses.
What is a primary component of the Gramm-Leach-Bliley Act?
There are three major components of the Gramm-Leach-Bliley Act including a Financial Privacy Rule, Safeguards Rule, and Pretexting Protection.
Which of the following statements accurately describe the Gramm-Leach-Bliley Act?