In the July 11, 2016, issue of the Federal Register (81 FR 44801, click here) the CFPB published proposed amendments to Regulation P (12 CFR part 1016), which implements the privacy notice provisions of the Gramm-Leach-Bliley Act (GLBA). The GLBA and Regulation P mandate that financial institutions provide their customers with annual notices regarding the institutions’ privacy policies. Regulation P sets forth requirements for how financial institutions must deliver these annual privacy notices. In certain circumstances, Regulation P permits financial institutions to use an alternative delivery method to provide annual notices. This method requires, among other things, that the annual notice be posted on a financial institution’s Web site. The Regulation P proposed amendments would implement a December 4, 2015, amendment to the GLBA. This GLBA amendment added new section 503(f) that provides an exception under which financial institutions that meet certain conditions are not required to provide annual privacy notices to customers. Section 503(f) requires that to qualify for this exception, a financial institution must not share nonpublic personal information about customers except as described in certain statutory exceptions and that the financial institution must not have changed its policies and practices with regard to disclosing nonpublic personal information from those that the institution disclosed in the most recent privacy notice it sent. In addition to implementing the above GLBA amendment, the Regulation P proposed amendments would also provide timing requirements for delivery of annual privacy notices if a financial institution that qualified for the GLBA annual notice exception later changes its policies or practices in such a way that it no longer qualifies for the exception. The Regulation P proposed amendments would also remove the alternative delivery method for annual privacy notices because this delivery method would likely no longer be used in light of the annual notice exception. Finally, the Regulation P proposed amendments would make a technical correction to one of its definitions. You may submit comments on the Regulation P proposed amendments, identified by Docket No. CFPB-2016-0032 or RIN 3170-AA60, by any of the following methods: • Electronic: http://www.regulations.gov. Follow the instructions for submitting comments. • Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. • Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002. Comments must be received by the CFPB on or before August 10, 2016.
