Additional privacy notice relief from an unusual source
AML AND COMPLIANCE NEWS |
President Obama signed the Fixing America’s Surface Transportation Act of 2015 (FAST Act) into law on Dec. 4, 2015. The FAST Act covers a wide variety of topics including several impacting financial services located in Division G. Title LXXV of Division G, titled “Eliminate Privacy Notice Confusion,” provides an additional exception to the Gramm-Leach-Bliley Act requirement to send annual privacy notices.
If a financial institution meets the following two requirements:
- Only shares information in ways that do not require an opt-out
- Hasn’t changed its policies and practices regarding disclosing nonpublic personal information from those that were disclosed in the most recent privacy notice sent to consumers
The financial institution will not need to send an annual privacy disclosure until it no longer meets one of the two requirements above.
Regulation P has not been amended to reflect this change in the law, and there has not been any indication form the Consumer Financial Protection Bureau when that may happen. Technically, the law will trump that in the regulation because the two are in conflict. However, institutions have several options to consider as to how to proceed–maintain the status quo until Regulation P is amended, contact their regional examiner or field office, or follow the provisions of the FAST Act immediately.