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New
Privacy Notice Rule Final
Eight
regulatory agencies have agreed on the final rule for a new Gramm-Leach-Bliley
Act (GLBA) model privacy disclosure form. The model form was
required under the Regulatory
Relief Act (RRA) enacted October 13, 2006, that directed the
Agencies to jointly develop a model form to be used at the option of
the financial institution to provide the required GLBA disclosures.
A
model privacy form was published in 2007 that financial institutions
could use until further notice. In April 2009, the Securities
and Exchange Commission reopened the comment period on the
proposed rulemaking to solicit comment on a research report and test
data pertaining to additional consumer testing of the proposed model
privacy form. As a result, the Agencies are amending the privacy
rule to include this new model privacy form. It is substantially as
proposed with changes based on comments as well as additional
consumer testing.
The
two-page model form is designed to meet the requirements of the RRA
which include:
·
Having a
clear format and design that is comprehensible to consumers.
·
Providing
for clear and conspicuous disclosures;
·
Enabling
consumers easily to identify the sharing practices of a financial
institution and to compare privacy practices among financial
institutions; and
·
Being
succinct, and using an easily readable type font.
The Form
The new form is two pages rather than the three pages in the
proposed form. Institutions should be aware that:
·
The form can
be printed on the front and back of a single piece of paper or on
two separate pages.
·
No specific
paper size is mandated leaving financial institutions flexibility to
choose a paper size that is sufficient to meet the layout and
minimum font size requirements with sufficient white space on all
sides of the content.
·
Information
must be printed in portrait style.
·
The notice
must a minimum of 10 point size font (unless otherwise specified in
the instructions) with sufficient spacing between the lines of type.
This makes it easier to read and ensures the information is not too
tiny.
·
The NCUA
portion of the rule refers to Section 716 of the NCUA Rules and
Regulations. It specifies that the word “consumer” must be
changed to “member” in the form’s content.
·
A financial
institution’s corporate logo may be included on any page so long
as it does not interfere with the readability of the form or the
space constraints of each page. The logos may be printed in color.
·
The form
must be printed on white or light colored paper with black or other
contrasting ink color. Spot color may be used to achieve visual
interest, so long as the color contrast is distinctive and does not
detract from the readability of the model form.
·
The notice
may be delivered electronically to consumers who have agreed to
electronic receipt of notices. (Note the Agencies originally planned
to make available in late 2009 a privacy notice form with a
“web-based design.”)
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