Act The GLBA is also known as the Financial Services Modernization Act of 1999. ACT If you have questions regarding any of the GLBA requirements, please contact the FTC at 202-326-2222. <> Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. 0000007438 00000 n Section 3(a)(4)(B) of the Securities Exchange Act of 1934 (15 U.S.C. The first is that it explicitly makes it illegal to use pretexting to try to gain access to the information about victims held by a financial institution covered by the Act. Ms. Kaptur (for herself, Ms. Norton, Ms. Omar, Ms. Pingree, Ms. Wild, Ms. Tlaib, Mr. Pocan, and Mrs. Watson Coleman) introduced the following bill; which was referred to the Committee on Financial Services. 0000006100 00000 n This Electronic Announcement provides a summary of the changes to the GLBA requirements resulting from the Final Rule, explains the impacts of the changes on postsecondary institutions, and describes changes to the Department of Educations (Department) enforcement of the GLBA requirements. Youve cast your vote. Wall between commercial banks and securities activities reestablished. 1828) is amended by adding at the end the following new subsection: Prohibition on affiliation between insured depository institutions and investment banks or securities firms. It's also worth noting that, from the GLBA's perspective, part of safeguarding data involves having business continuity and disaster recovery plans in place, in case some catastrophic breach or data loss occurs that will affect your customers. The Congress ratifies the interpretation of the paragraph designated the Seventh of section 5136 of the Revised Statutes of the United States (12 U.S.C. For instance, there's no specific GLBA password requirements; instead, GLBA-covered institutions are expected to follow contemporary best practices for authenticating access to personal data, which in practice today would include an appropriate password regime. Federal government websites often end in .gov or .mil. The Graham-Leach-Bailey Act (GLBA) is a 1999 law that allowed financial services companies to offer both commercial and investment banking, something that had been banned since the Great Depression. Pub. Section 6801 et seq. Laws acquire popular names as they make their way through Congress. WebThe Security Guidelines implement section 501 (b) of the Gramm-Leach-Bliley Act (GLB Act) 4 and section 216 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). 1338, codified in relevant part primarily at 15 U.S.C. comply with the GLBA Act Now what? The Gramm-Leach-Bliley Act (GLB Act or GLBA) is also known as the Financial Modernization Act of 1999. WebGLB. Text Help us develop the tools to bring real-time legislative data into the classroom. WebV, Gramm-Leach-Bliley Act (15 U.S.C. The Act also prevents financial institutions from disclosing individuals' nonpublic personal information which is confidential. %PDF-1.2 % We hope to enable educators to build lesson plans centered around any bill or vote in Congress, even those as recent as yesterday. An individual who is an officer, director, partner, or employee of any broker or dealer, any investment adviser, any investment company, or any other person engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes, or other securities may not serve at the same time as an officer, director, employee, or other institution-affiliated party of any insured depository institution. A farm bill, for instance, might contain provisions that affect the tax status of farmers, their management of land or treatment of the environment, a system of price limits or supports, and so on. [ 1] The GLBA provides a framework for regulating the privacy and data security practices of a broad range of financial institutions. The process of incorporating a newly-passed piece of legislation into the Code is known as "classification" -- essentially a process of deciding where in the logical organization of the Code the various parts of the particular law belong. Title V, Subtitle A of the Gramm-Leach-Bliley Act (GLBA) 1 . Prohibition on banking activities by securities firms clarified. H.R.2714 - 118th Congress (2023-2024): To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called "Glass-Steagall Act", and for other purposes. <> Institutions and servicers also sign the Student Aid Internet Gateway (SAIG) Enrollment Agreement, which states that they will ensure that all Federal Student Aid applicant information is protected from access by, or disclosure to, unauthorized personnel, and that they are aware of and will comply with all of the requirements to protect and secure data obtained from the Departments systems for the purposes of administering the Title IV programs. GovTrack.us is not a government website. Text Title V boldly introduces the topic of Privacy and the Disclosure of Nonpublic Personal Information. 0000000809 00000 n L. 111203, set out as a note under section 552a of Title 5, Government Organization and Employees. To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Text Parts 160 and 164, established under the Health Insurance rZ 0000001610 00000 n See also infra discussion at section II.A. 1844(c)) is amended. 112 0 obj << /Linearized 1 /O 115 /H [ 1050 560 ] /L 104808 /E 30824 /N 18 /T 102449 >> endobj xref 112 22 0000000016 00000 n G lfD ] _#1WL~3"n[d^'Zv;f;Yah~9yea19I>~T{[1dK@=?Z~ax>8D;bc&aoF SB;\R )jmAX4p& The Act also limits the sharing of account number information for marketing purposes. 12 new state privacy and security laws explained: Is your business ready? II. Information security safeguards are fundamental to a system of internal controls and essential for preventing disruption to these core objectives as they guard the information systems that collect, maintain, process, and disseminate student information. WebSec. The consequences for failure to comply with the GLBA can be severe: Our advice? 0000001782 00000 n Data breaches (a) 24, as amended by section 16 of the Banking Act of 1933 and subsequent amendments), section 21 of the Banking Act of 1933, or section 18(bb) of the Federal Deposit Insurance Act more narrowly than the reasoning of the Supreme Court of the United States in the case of Investment Company Institute v. Camp (401 U.S. 617 et seq. In line with the older Fair Credit Reporting Act, the Privacy Rule also requires that institutions give consumers the ability to forbid the financial institution from sharing their information with unaffiliated third parties. Gramm-Leach-Bliley Act An Act to Enhance Competition in the Financial Services Industry by Providing a Prudential Framework for the Affiliation of Banks, Securities Firms, Insurance Companies, and Other Financial Service Providers, and for Other Purposes Public Law 106-102, 106th Congress, S. 900 NOTE: 113 Stat. Hopefully our description of the GLBA's broad reach makes it clear why the Department of Education is involved in enforcing a financial service law. is amended by striking section 45. Likens., In the Matter of, 77 Investigations, Inc. and Reginald Kimbro, CEO Group, Inc. d/b/a Check Em Out, and Scott Joseph. The changes to the Safeguards Rule expand on the minimum information security requirements that should already be in place at participating institutions and their third-party servicers. Join GovTrack.uss Inner Circle With a Yearly Membership, In retaliation for prosecutor Alvin Bragg indicting Trump, ALVIN Act would ban federal funds for, On March 29, Arizona Republican Andy Biggs introduced a (possible record) 521 bills in one day, No More Political Prosecutions Act would give presidents like Trump option to move their legal. 314.4(e)). The law repealed the Glass-Steagall Act of 1933, which limited securities activities within commercial banks and interactions between commercial banks and securities firms.The passage of the GLBA allowed commercial banks, The law applies to any business that is "significantly engaged" in providing financial products or services to consumers. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. 0000030139 00000 n Gramm-Leach-Bliley Act Gramm-Leach Privacy pros zero in on Title V, Subtitle A of the GLBA (15 U.S.C. Text The Safeguards Rule took effect ABOUT THE GLB ACT The Gramm-Leach-Bliley Act was enacted on November 12, 1999. 1. WebGrammLeachBliley Act (GLBA), Regulation R, and Retail Nondeposit Investment Sales The Gramm-Leach-Bliley Act sets forth certain exceptions for banks from the broker-dealer registration requirements of the Securities and Exchange Act of 1934. !`MBq!O!Xe=xB7p4IjPw 0jb7cZ5>$. Find the resources you need to understand how consumer protection law impacts your business. The general public may be most aware of the GLBA in the context of debates as to whether it helped cause the 2008 subprime mortgage crisis, but for IT professionals, it's much better known for the data security and privacy mandates it imposes on a wide range of companies and organizations, even beyond the banking industry. ); (3)AAa covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, 45 C.F.R. Contributing writer, The FTC also provides a great deal of general data security guidance on its website. 1st Session. Please sign up for our advisory group to be a part of making GovTrack a better tool for what you do. Were looking to learn more about who uses GovTrack and what features you find helpful or think could be improved. Each institution that participates in the Title IV programs has agreed in its Program Participation Agreement (PPA) to comply with the GLBA Safeguards Rule under 16 C.F.R. 1843) is amended by striking subsections (k), (l), (m), (n), and (o). BpcUNy!6g82ja3u|jMM#GHR! The law requires Section 6801 et seq. But the framers of the law correctly foresaw that by loosening existing banking regulations, they were opening the door to the creation of huge, sprawling firms offering an array of services ranging from checking accounts to high-end investmentsand that these companies would have access to huge amounts of customer information. Gramm 1831w). The FTC Safeguards Rule requires covered companies to develop, implement, and maintain an information security program with administrative, technical, and physical safeguards designed to protect customer information. The objectives of the GLBA standards for safeguarding information are to . The Federal Deposit Insurance Act (12 U.S.C. 6701(g)). (b). The current information security requirements that institutions must meet are the GLBA Safeguards Rule requirements at 16 C.F.R. by redesignating clauses (ii) and (iv) as clauses (i) and (ii), respectively. endobj Find the resources you need to understand how consumer protection law impacts your business. Were looking for feedback from educators about how GovTrack can be used and improved for your classroom. One, a reference to a Public Law number, is a link to the bill as it was originally passed by Congress, and will take you to the LRC THOMAS legislative system, or GPO FDSYS site. HTQj@}Ygv5/"M";eag|BG y ^#XmRdPRj"\mc@FRDq+7{ER6{,_{kDF0Z"nd/b>oOc%"!a(N9!`bH.^"3=TgoNqe#k# ^TW=\wR}B >r? WebId., adding 15 U.S.C. H.R.2714 - 118th Congress (2023-2024): To repeal certain the purposes of this Act and the Gramm-Leach-Bliley Act, the following activities as, and the extent to which such activities are, financial in nature or incidental to a financial activity: (A) Lending, exchanging, transferring, investing for. You'll need to: The Safeguard Rule's mandates are generally phrased in terms of outcomes rather than specific infosec techniques that are required to achieve those outcomes. 5 0 obj Sun Spectrum Communications Organization, Inc., et al. This is a project of Civic Impulse, LLC. Due to aggressive automated scraping of FederalRegister.gov and eCFR.gov, programmatic access to these sites is limited to access to our extensive developer APIs. When it comes to the Privacy Rule, the GLBA makes a distinction between different types of people a company interacts with. For purposes of this subsection, the terms broker and dealer have the same meanings as in section 3(a) of the Securities Exchange Act of 1934 and the terms investment adviser and investment company have the meaning given such terms under the Investment Advisers Act of 1940 and the Investment Company Act of 1940, respectively. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 11494, 129 Stat. Gramm-Leach-Bliley Act (Privacy of Consumer Financial Information) Introduction . 668.16(c), an institution is required to have an adequate system of internal controls that provides reasonable assurance that the institution will achieve its objectives regarding reporting, operations, and compliance. 78c(a)(5)(C)) is amended. "z0:jy+^2>yA8#4o ZZ'n{hI~B^[ _CEukV.aZ: Fke\~NU7rh6V-K@% ;#8]VRU`ixsd#My:W BG;Jmwai`J SVzsAH>'o`K|;3@n7c4K3qNZKCyI[L(*LCYW\ytgRCBeEkz.0;e=(i'm;hX ]j`K;{'J2'~#%mc6BZp"37;&1uTr}*eUOf^>!Iu^.IkJJPaxxQ HY=Aw4-zHZ xU:NgO?2*4%Y)w/icu@oCRZ6u3 t6h" A;)sf5bbx6Gx0=(jfXaFBC&Gd*4Pe}LxUF(LnmOTUsyIqpY( The Graham-Leach-Bailey Act (GLBA) is a 1999 law that allowed financial services companies to offer both commercial and investment banking, something that had Youre more than a vote, so support GovTrack today with a tip of any amount: Or keep using GovTrack for free! 6803(f)), and before disclosing any consumer's personal financial information to an unaffiliated third party, and must give notice and an opportunity for that consumer to "opt out" from such disclosure.