The Gramm-Leach-Bliley Act of 1999 became effective on July 1, 2001.
NATP hears directly from the FTC regulators on the questions of compliance.
The Gramm-Leach-Bliley Act (the "Act") was signed by President Clinton in November, 1999. Section 504(a) of the Act requires the Federal Trade Commission to regulate the application of the Act to "financial institutions." Tax preparers and other providers of financial services are included in the Act's definition of "financial institutions." The FTC issued final regulations on March 24, 2000. See 16 CFR Part 313. July 1, 2001 is the effective date of the regulation.
"We do not disclose any non-public personal information about our customers or former customers to anyone, except as instructed to do so by such customers or as required by law. We restrict access to non-public personal information to those professionals necessary to[brief description of service provided ] and we maintain physical, electronic, and procedural safeguards to guard your non-public personal information.
The significant difference, other than the broader disclosure represented below, is that the Act requires practitioners who do share information with "affiliated third parties" to present clients [referred to as customers by the Act] with the opportunity to "opt-out." When a client opts-out the Act prohibits the practitioner from divulging any "non-public" information to even an affiliated third party for any purpose. The Act will treat even directory information as "non-public."
"We do not disclose any non-public personal information about our customers or former customers to anyone, except as instructed to do so by such customers, or as required by law. Further exception is made with respect to directory information, limited to [describe directory information, e.g. name, address, and phone number], we may refer this information to an affiliated financial service professional where such referral is thought to be in your interest. Please advise us if instead you would require us to hold all information, including basic directory information, confidential under any circumstance. We restrict access to non-public personal information to those professionals necessary to [brief description of service provided] and we maintain physical, electronic, and procedural safeguards to guard your non-public personal information.
An entire copy of this federal Rule can be found as a pdf file (requiring Adobe Acrobat) at http://www.ftc.gov/os/2000/05/index.htm under May 24, 2000 at 16 CFR Part 313.