Gramm-Leach-Bliley (GLB) Act of 1999
The Act eliminates many Depression-era restrictions on banks, securities
firms, insurance companies, and other financial service providers that had previously
barred companies in different financial sectors from engaging in each other's
businesses. It also addresses other issues such as information privacy and redomestication
of mutual insurers. Generally, it bars a financial institution from disclosing
a consumer's nonpublic personal information to an unaffiliated third party unless
it provides notice to the consumer and allows the consumer an opportunity to
opt out. It requires financial institutions to provide customers with a privacy
notice at the start of the customer relationship and once annually thereafter.
Also, GLB requires each federal regulatory agency to establish standards by
which the financial institutions under its jurisdiction implement "administrative,
technical, and physical safeguards."
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