The Gramm-Leach-Bliley Act

GLBA is the Financial Services Modernization Act of 1999 designed to enhance competition in the financial services industry. The legal barriers that have traditionally separated mergers of the insurance, banking and securities industries have been substantially eliminated from federal law. While creating broader opportunities, financial institutions are now tasked with new consumer privacy safeguards and disclosure requirements. (Sections 501 and 505 of GLBA) The Federal Reserve has established guidelines for standards for safeguarding customer information. As a potential correlation to the business continuity arena, the guidelines are as follows: Each institution is required to implement a written information security program that includes administrative, technical and physical safeguards appropriate to the size and complexity of the bank and the nature and scope of its activities.