The Federal Register published a Consumer Financial Protection Bureau ("CFPB") request for comments on a proposal to exempt certain financial institutions from the annual notice requirement of Regulation P. The proposal would implement a December 2015 statutory amendment to the Gramm-Leach-Bliley Act ("GLBA") that simplifies the annual privacy notice requirement.
Under the amendment, financial institutions that meet certain conditions are not required to provide annual privacy notices to customers. In order to qualify for this exception, a financial institution must neither (i) share nonpublic personal information about customers except as described in certain statutory exceptions, nor (ii) change its policies and practices with regard to disclosing nonpublic personal information from those that the institution disclosed in its most recent privacy notice sent to customers.
The amendment eliminates the provision of Regulation P that allowed alternative methods for the delivery of annual statements. It also specifies the timing requirements for the delivery of annual privacy notices in the event that an institution changes its policies or practices and no longer is exempt.
Comments on the proposal must be submitted by August 10, 2016.
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