In addition to the numerous mortgage-related provisions in Senator Shelby’s regulatory reform bill entitled the “Financial Regulatory Improvement Act of 2015,” the bill contains a provision directed at the annual financial privacy notice required by the Gramm-Leach-Bliley Act (GLBA), which is implemented by Regulation P. In October 2014, a CFPB amendment to Regulation P became effective that allows financial institutions that meet certain requirements to deliver annual financial privacy notices to their customers using an alternative online delivery method.
Section 101 of the regulatory relief bill would go a step further by amending the GLBA to create an exception under which a financial institution would not have to deliver an annual financial privacy notice if it (1) does not share nonpublic personal information (NPPI) with nonaffiliated third parties in a manner that triggers GLBA opt-out rights, (2) has not changed its policies and practices with respect to sharing NPPI from those disclosed in the most recent annual privacy notice, and (3) otherwise provides customers access to the institution’s most recent annual privacy notice in electronic or other form permitted by regulations.