Under GLBA. which of these organizations would not be required to provide its customers with an annual privacy notice?

Question

Options

• AAn insurance company that has no privacy department
• BAn auction house that also acts as a financial institution
• CA credit union that has made changes to its privacy notice from last year.
• DA credit union that has not made changes to its privacy notice from last year

• A
  9% (5)
• B
  5% (3)
• C
  14% (8)
• D
  72% (42)

Explanation

Under the Gramm-Leach-Bliley Act (GLBA), financial institutions are required to provide their customers with an annual privacy notice that explains how they collect, share, and protect customers' personal information. However, the GLBA Privacy Rule (16 CFR Part 313) was amended by the Fixing America's Surface Transportation Act (FAST Act) in 2015, which introduced an exception to this requirement. According to the FAST Act, financial institutions are not required to provide annual privacy notices if they meet two conditions: No changes have been made to their privacy policy or practices since the last notice was sent to The financial institution does not share customers' nonpublic personal information with nonaffiliated third parties in a way that triggers an opt-out requirement under GLBA.

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