The Federal Deposit Insurance Corporation, the other federal financial institution regulatory agencies, the Securities and Exchange Commission, the Federal Trade Commission, and the Commodity Futures Trading Commission (the agencies) have jointly published a Notice of Proposed Rulemaking (NPR) seeking comment on a model privacy form that financial institutions could use to satisfy the privacy notice requirements of the Gramm-Leach-Bliley Act (GLBA). The proposed privacy form would also provide consumers with the opportunity to limit certain information-sharing practices, as permitted by the GLBA and the Fair Credit Reporting Act. Comments on the proposed rule are due by May 29. Highlights follow:
The Financial Services Regulatory Relief Act of 2006 (FSRRA) required the agencies to propose a model form that is succinct and comprehensible to consumers, allows consumers to easily compare financial institutions' privacy practices, and is in an easily readable type font.
- The agencies believe that the proposed model notice, developed through consumer research, meets the requirements of the FSRRA.
- The model notice would provide a compliance "safe harbor" for institutions that choose to use it when it is finalized.
- The NPR seeks comment on a variety of issues related to the model notice, including a proposed phase-out period for the sample notice clauses that were originally published in Appendix A of Part 332 of the FDIC's rules and regulations on June 1, 2000.