CFPB Proposes Regulation P Changes to Implement FAST Act's Annual Privacy Notice Exception | Practical Law

CFPB Proposes Regulation P Changes to Implement FAST Act's Annual Privacy Notice Exception | Practical Law

The Consumer Financial Protection Bureau (CFPB) has proposed changes to Regulation P, which implements the portion of the Gramm-Leach-Bliley Act (GLBA) that concerns the privacy of consumer financial information and consumer privacy notices, to implement the FAST Act's annual privacy notice exception.

CFPB Proposes Regulation P Changes to Implement FAST Act's Annual Privacy Notice Exception

by Practical Law Intellectual Property & Technology
Published on 05 Jul 2016 • USA (National/Federal)
The Consumer Financial Protection Bureau (CFPB) has proposed changes to Regulation P, which implements the portion of the Gramm-Leach-Bliley Act (GLBA) that concerns the privacy of consumer financial information and consumer privacy notices, to implement the FAST Act's annual privacy notice exception.
On July 1, 2016, the Consumer Financial Protection Bureau (CFPB) announced a proposed amendment to Regulation P, which implements the portion of the Gramm-Leach-Bliley Act (GLBA) that concerns the privacy of consumer financial information and consumer privacy notices. Among other things, Regulation P:
  • Requires financial institutions to provide an annual notice describing their privacy policies and practices to their customers.
  • Sets forth requirements for how financial institutions must deliver these privacy notices.
The CFPB's proposed rule changes:
  • Implement a statutory amendment to the GLBA, passed in December 2015, that ends the requirement for financial institutions to mail an annual notice, provided that they:
    • have not changed their policies and practices on the disclosure of nonpublic personal information since the previous notice was sent; and
    • do not share nonpublic personal information with third parties in a manner that triggers a customer's right to opt out.
  • Establish deadlines for financial institutions to resume annual privacy notices if they no longer qualify for the exception.
For more information on the December 2015 amendment, part of the Fixing America’s Surface Transportation Act, see Legal Update, President Obama Signs FAST Act Modifying the Gramm-Leach-Bliley Act’s Annual Privacy Notice Requirement.
Interested parties should submit comments within 30 days of publication in the Federal Register. Comments may be submitted by mail or electronically here.