The Gramm–Leach–Bliley Act (GLBA), also widely known as the Financial Services Modernization Act of 1999, has had a significant impact on financial institutions. The Act applies strict government mandates, particularly concerning the collection and disclosure of consumers’ personal financial information. Among these mandates is the requirement that financial institutions have security policies and systems in place to safeguard information.
GLBA applies to financial institutions that collect information directly from customers and to institutions that obtain information from other financial institutions. Financial institutions include banks, insurance companies, securities companies, credit-rating agencies, mortgage brokers, and real estate appraisers—basically any organization that offers financial products or services.