312-49 · Question #617
Which among the following U.S. laws requires financial institutions--companies that offer consumers financial products or services such as loans, financial or investment advice, or insurance--to…
The correct answer is C. GLBA. The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, mandates that financial institutions (banks, lenders, insurers, investment advisors) safeguard customers' nonpublic personal information and disclose their data-sharing practices…
Question
Which among the following U.S. laws requires financial institutions--companies that offer consumers financial products or services such as loans, financial or investment advice, or insurance--to protect their customers' information against security threats?
Options
- ASOX
- BHIPAA
- CGLBA
- DFISMA
How the community answered
(22 responses)- A5% (1)
- C91% (20)
- D5% (1)
Explanation
The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, mandates that financial institutions (banks, lenders, insurers, investment advisors) safeguard customers' nonpublic personal information and disclose their data-sharing practices. SOX (Sarbanes-Oxley) targets financial reporting fraud in public companies, HIPAA protects healthcare information, and FISMA governs federal information systems - none are specifically aimed at consumer financial data protection.
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