Final answer:
The SEC regulation known as the Financial Services Modernization Act of 1999, or Gramm-Leach-Bliley Act, requires financial institutions to provide privacy policies and safeguard customer information. It sits within a broader legislative framework that includes HIPAA and the Fair Credit Reporting Act to protect various types of personal data.
Step-by-step explanation:
The regulation enacted by the Securities and Exchange Commission (SEC) to protect the privacy of customer information is commonly referred to as the Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act. This act requires financial institutions to provide their customers with a privacy policy that explains what information is collected, how it is used, and how it is protected. Additionally, it mandates that these institutions must safeguard sensitive data and inform customers of their right to opt out of certain information-sharing practices. The act is a part of the extensive legislative framework in the United States designed to ensure online privacy and security, protecting personal, financial, and medical information from unauthorized access or disclosure.
Other important regulations related to data privacy include the Health Insurance Portability and Accountability Act (HIPAA) of 1996, which safeguards medical information, and the Fair Credit Reporting Act of 1970, which ensures the confidentiality of personal financial information. Countries and regions around the world, such as the European Union with its General Data Protection Regulation (GDPR), have also enacted robust data protection laws to address the increasing concerns surrounding the privacy and security of digital information.