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Can you summarize 12 CFR Part 1016?
CONSUMER FINANCIAL PROTECTION BUREAU > PRIVACY OF CONSUMER FINANCIAL INFORMATION (REGULATION P)
Short Summary
This legal document, governed by the Code of Federal Regulations, outlines the requirements for privacy and opt-out notices in the context of consumer financial information. It applies to financial institutions, credit unions, and covered entities subject to FTC enforcement jurisdiction. The document specifies the initial notice requirement, which mandates that institutions provide a clear and conspicuous notice to customers and consumers that accurately reflects their privacy policies and practices. The notice must be provided when establishing a customer relationship and before disclosing nonpublic personal information to nonaffiliated third parties. Exemptions to the initial notice requirement exist for certain circumstances. The document also outlines the requirement for an annual privacy notice, which must be provided at least once in any 12 consecutive months during the customer relationship. Exemptions for former customers, customers with inactive accounts, and other specific situations are specified. The document further provides guidance on the content of privacy notices, including the categories of information collected and disclosed, the consumer’s right to opt out, and policies for protecting the confidentiality and security of information. It also discusses the form and delivery of opt-out notices, including reasonable means for consumers to exercise their opt-out right. The document emphasizes the continuing right of consumers to opt out at any time and provides guidance on joint relationships and the duration of opt-out directions. Overall, the document aims to ensure that consumers receive clear and accurate notice of privacy policies and practices from financial institutions.
Whom does it apply to?
Financial institutions, credit unions, covered persons or service providers subject to the Gramm-Leach-Bliley Act
What does it govern?
Privacy of consumer financial information
What are exemptions?
Certain motor vehicle dealers, entities regulated by the Securities and Exchange Commission or the Commodity Futures Trading Commission
What are the Penalties?
Up to $1,000,000 per violation
Jurisdiction
U.S. Federal Government