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There are three major components of the Gramm-Leach-Bliley Act including a Financial Privacy Rule, Safeguards Rule, and Pretexting Protection.
The Gramm-Leach-Bliley Act (GLB Act or GLBA), also known as the Financial Modernization Act of 1999, is a federal law enacted in the United States to control the ways financial institutions deal with the private information of individuals.
Encryption implementations should include: Encryption strength sufficient to protect the information from disclosure until such time as disclosure poses no material risk. Effective key management practices. Robust reliability. Appropriate protection of the encrypted communications endpoints.
The Financial Services Modernization Act of 1999, otherwise known as the Gramm-Leach-Bliley Act (GLBA), repealed banking regulations from the 1930s the Glass-Steagall (1933) and the Bank Holding Company Act (1956).
The law prohibited bank affiliation with firms that were engaged principally in underwriting and dealing securities. This made it possible for bank holding companies to create subsidiaries or acquire firms involved in some underwriting or dealing, as long as most of their activities were otherwise permissible.
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The FSMA affects consumer privacy by requiring financial institutions to disclose their information-sharing practices to consumers. This allows consumers to make informed decisions about whether to do business with a particular financial institution.
The three sections include the following: Financial Privacy Rule. This rule, often referred to as the Privacy Rule, places requirements on how organizations may collect and disclose private financial data. Safeguard Rule. Pretexting Rule.
The GrammLeachBliley Act passed in November 1999, repealing portions of the BHCA and the GlassSteagall Act, allowing banks, brokerages, and insurance companies to merge, thus making the CitiCorp/Travelers Group merger legal.
3 Since many regulations have been instituted since the 1930s to protect bank depositors, GLBA was created to allow these financial industry participants to offer more services. GLBA was passed on the heels of commercial bank Citicorp merger with the insurance firm Travelers Group.
GLBA repealed Sections 20 and 32 of the Glass-Steagall Act and aspects of the Bank Holding Company Act, effectively eliminating the walls of separation between key sectors of the financial services industry. The Act also created new regulations for financial holding companies (FHC)the centerpiece of the act.

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