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What are the three sections of Gramm-Leach-Bliley Act?

User Jimadine
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Final answer:

The three sections of the Gramm-Leach-Bliley Act are the Financial Privacy Rule, the Safeguards Rule, and the Pretexting Provisions, all focused on protecting consumers' personal financial information.

Step-by-step explanation:

The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, repealed part of the Glass-Steagal Banking Act of 1933. While the Glass-Steagal Act had previously separated commercial banking, investment banking, and insurance services, the Gramm-Leach-Bliley Act allowed for their integration. The three sections of the Gramm-Leach-Bliley Act are:

  • The Financial Privacy Rule, which governs the collection and disclosure of customers' personal financial information by financial institutions.
  • The Safeguards Rule, which requires financial institutions to implement security programs to protect such information.
  • The Pretexting Provisions, which prohibit the practice of pretexting (accessing private information using false pretenses).

These provisions ensure a balance between financial service companies' ability to consolidate and offer a broad array of services, while also protecting consumers' personal financial information.

User Doelleri
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