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#2052740 - 12/07/15 02:34 PM New Bill Passed - Annual Privacy Notice Eliminated
peony Offline
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peony
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I received an email from the local banking association with the below information:

President Obama on Friday signed a long-term highway bill that included several regulatory relief provisions. These measures, now signed into law after passing the House and Senate last week, will:
• Reduce the burden of unnecessary privacy notice paperwork. (Privacy notices will ONLY need to be sent out when an account is opened or when the privacy notice is changed).
• Expand the number of banks eligible for the 18-month exam cycle.
• Equalize the SEC registration and de-registration thresholds for savings and loan holding companies.
• Expand Trups CDO relief for smaller bank holding companies.
• Establish a process for designating an area rural for purposes of Consumer Financial Protection Bureau exemptions.


Regarding to the annual privacy notices, I can't seem to find anything about when this will be in effect. We are in the process of getting the privacy notice on our statements and sending out the notices to the ones that wouldn't get a statement but we were wondering since President signed the bill on Friday, are we ok to scrap the mailing since it's no longer required??

We are unable to find any specific information regarding to this bill anywhere. Would love to hear your thoughts and opinions! Thanks!

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#2052742 - 12/07/15 02:38 PM Re: New Bill passed peony
John Burnett Offline
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I would not change plans yet. There still needs to be a reg change from the Bureau.
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#2052757 - 12/07/15 03:03 PM Re: New Bill passed peony
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Sounds to me that the law was effective on the date it was signed by the President, regardless of what current regulations might say.

Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803) is amended by adding at the end the following:
‘‘(f) EXCEPTION TO ANNUAL NOTICE REQUIREMENT.—A financial institution that—
‘‘(1) provides nonpublic personal information only in accordance with the provisions of subsection (b)(2) or (e) of section 502 or regulations prescribed under section 504(b), and ‘‘(2) has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with this section, shall not be required to provide an annual disclosure under this section until such time as the financial institution fails to comply with any criteria described in paragraph (1) or (2).’’.
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#2052808 - 12/07/15 04:33 PM Re: New Bill passed rlcarey
Reads Regs Offline
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Originally Posted By rlcarey
Sounds to me that the law was effective on the date it was signed by the President, regardless of what current regulations might say.


Thanks, Randy. I found the language you cited in section 75001 of HR 22 (FAST Act) but did not see any specific language about when this provision takes effect. I searched the entire law for the word "effective" but could not find anything specifically addressing this section.
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#2052831 - 12/07/15 05:33 PM New Bill Passed - Annual Privacy Notice Eliminated Reads Regs
Elwood P. Dowd Offline
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The regulation will need to be amended to comport with the statute. However, as the language in the regulation is now in direct conflict with the language in the statute, the language in the statute controls.

Regulation CC is still awaiting the modification that will indicate that the next day availability amount is the $200 stated in the statute, not the $100 stated in the regulation. (The statute was amended in 2011.)

"Manana" is the byword for the federal bureaucracies.
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#2053203 - 12/09/15 12:25 AM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Bibliofiend Offline
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I got this from a friend on 12/7/15:
President Obama on Friday signed a long-term highway bill that included several regulatory relief provisions long advocated by ABA. These measures, now signed into law, will:
• Expand the number of banks eligible for the 18-month exam cycle.
• Equalize the SEC registration and de-registration thresholds for savings and loan holding companies.
• Reduce the burden of unnecessary privacy notice paperwork.

The last bullet apparently refers to the privacy notice and this is the link to the new law. https://www.congress.gov/bill/114th-congress/house-bill/22/text

Has anyone else noticed this? From chatter with some colleagues, it seems that this is good new for those who don't share info, other than permitted by law. That is, if you don't have to offer customers an opt-out option.
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#2053208 - 12/09/15 01:36 AM Re: New Bill Passed - Annual Privacy Notice Eliminated Bibliofiend
Elwood P. Dowd Offline
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I think peony noticed it in post 2052740 above.
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#2053217 - 12/09/15 01:21 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Noah Wiseman Offline
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I've reviewed the language of the Surface Transportation Reauthorization and Reform Act of 2015 concerning the Exception to the Annual Privacy Notice Requirement Under the Gramm-Leach-Bliley Act and looked at the sections referenced in the added language in an effort to try to determine if my bank falls under this exception based on our sharing.

We only share as allowed by the law, but we include the Affiliate Marketing Notice (1022 Subpart C) information in our Privacy Notice. When a customer opts-out of Affiliate Marketing, we do not require they renew their opt-out every 5 years - we consider it permanent.

I believe that although we do include the Affiliate Marketing Notice which provides for an opt-out in our Privacy Notice we would still fall under the exception but I wanted to see what others thought on the subject as I realize I may have missed something in my reading. Any opinions would be appreciated.

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#2053226 - 12/09/15 02:15 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Online
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Information sharing with your affiliates is governed under the FCRA and not the GLBA.
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#2053242 - 12/09/15 02:47 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Reads Regs
John Burnett Offline
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Originally Posted By Reads Regs
Originally Posted By rlcarey
Sounds to me that the law was effective on the date it was signed by the President, regardless of what current regulations might say.


Thanks, Randy. I found the language you cited in section 75001 of HR 22 (FAST Act) but did not see any specific language about when this provision takes effect. I searched the entire law for the word "effective" but could not find anything specifically addressing this section.


The effective date of section 75001 was the date of enactment of the FAST Act, December 4. Before you leap into eliminating your annual mailings, think about contacting your regional lead examiner. Although it should be a relatively simple matter for the Bureau to get out an amendment to Regulation P, it may be a while before that happens.
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#2053333 - 12/09/15 05:59 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Elwood P. Dowd
Bibliofiend Offline
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Sorry, didn't notice peony's posting date, so didn't realize it was current. Contacted our regulator - the local contact did not know about this legislative act.
Last edited by Bibliofiend; 12/09/15 06:04 PM.
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#2053542 - 12/10/15 03:56 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
edAudit Offline
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You are here
As part of our IIA 1312 review the auditor wishes to have a list of ALL the regulations that we must follow. When I give him the Highway Bill (FAST Act) that should get him running.
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#2053588 - 12/10/15 06:22 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
SusieSpongehead Offline
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I spoke to our EIC at the FRB Denver Branch regarding this. After consulting a few colleagues he suggested that we wait to see if the CFPB issues something. We do not have to send the annual notice until July 2016 so fingers crossed that we hear something before then.

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#2053589 - 12/10/15 06:23 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
John Burnett Offline
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Probably the safest course of action -- for you and the examiner.
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#2053665 - 12/10/15 09:16 PM Re: New Bill Passed - Annual Privacy Notice Eliminated SusieSpongehead
Bibliofiend Offline
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Alas, we're on a January cycle, so a prompt ruling would be nice!
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#2053673 - 12/10/15 09:36 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
David Dickinson Offline
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I wouldn't hold my breath for a prompt ruling. As Ken pointed out, Reg CC changed years ago, and we still don't have a regulation that matches.

It's law. I'd discuss it with my regulators (just to give them a heads up) and take advantage of it. What's the risk?

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#2053683 - 12/10/15 09:51 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
John Burnett Offline
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Agreed. After looking at it again, I think if you don't share except as permitted without an opt-in, it's a very low risk thing.

With all those annual notices pulled, this is going to guarantee that the USPS will collapse. Oh, that will happen anyhow, right?
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#2053717 - 12/11/15 01:16 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Bibliofiend
Noah Wiseman Offline
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Originally Posted By Bibliofiend
Alas, we're on a January cycle, so a prompt ruling would be nice!

Although you typically send your annual Privacy Notice in a particular month does not mean that is when you must always send it. Regulation P only requires that you provide the notice annually, which is once in any period of 12 consecutive months and you get to define that period but must do so consistently. My bank defines this 12 consecutive month period as a calendar year (January 1 - Dec 31 -- although we do not define it in writing anywhere). This means we could send our annual Privacy Notice in January 2015 and we wouldn't need to send it again until December 2016. See Sec. 1016.5 (a)(1) for the general rule and (a)(2) for the rule example which I believe supports my statements. So it would all depend on what time frame you define as annually (as well as if you prefer to await CFPB regulation rule change before complying with this statute change).

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#2053725 - 12/11/15 02:04 PM Re: New Bill Passed - Annual Privacy Notice Eliminated SusieSpongehead
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Quote:
I spoke to our EIC at the FRB Denver Branch regarding this. After consulting a few colleagues he suggested that we wait to see if the CFPB issues something.


That's disappointing. The issue might not be addressed in "examiner school," but it is addressed in high school and college courses on the U.S. legislative system. A regulation can interpret a statute passed by Congress, but it cannot change it.

When Congress passed the Expedited Funds Availability Act it indicated that "local" or "nonlocal" was determined by the two banks' geographic locations. When the FRB issued the first version of Reg CC it "corrected" the statute to say that "local" vs. "nonlocal" could be determined by referencing the transit and routing numbers on the checks. The NCUA immediately sued to represent the interests of credit unions that used "payable through" banks. They got the ruling they asked for in short order; i.e. the FRB wasn't empowered to change Congressional intent even if it was to improve its logic.

If the regulation and the statute it is supposed to interpret conflict, the language in the statute controls.
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#2053820 - 12/11/15 07:01 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Noah Wiseman
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Noah Wiseman, thank you so much for your posting! Reading the cites, I agree with your interpretation. Which will allow me some breathing room.
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#2053829 - 12/11/15 07:27 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
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Here is the citation on "annual"

Sec. 1016.5 Annual privacy notice to customers required.

(a)(1) General rule. You must provide a clear and conspicuous notice to customers that accurately reflects your privacy policies and practices not less than annually during the continuation of the customer relationship. Annually means at least once in any period of 12 consecutive months during which that relationship exists. You may define the 12-consecutive-month period, but you must apply it to the customer on a consistent basis.

(2) Example. You provide a notice annually if you define the 12-consecutive-month period as a calendar year and provide the annual notice to the customer once in each calendar year following the calendar year in which you provided the initial notice. For example, if a customer opens an account on any day of year 1, you must provide an annual notice to that customer by December 31 of year 2.
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#2053970 - 12/14/15 03:23 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Bibliofiend Offline
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From today's BankersOnline Daily Compliance Briefing:

Privacy notice mailing requirement changed
Title LXXV of the Fixing America's Surface Transportation (FAST) Act of 2015 (Public Law 114-94), enacted on December 4, amended Section 503 of the Gramm-Leach-Bliley Act (GLBA) to create an exception to the annual privacy notice requirement for financial institutions. Institutions that don't share nonpublic personal information in any way that requires an opt-in under Regulation P, and haven't changed their policies and practices for disclosing nonpublic personal information from those most recently disclosed will no longer be required to provide an annual disclosure.We can expect a Bureau amendment to Regulation P to implement the change in the law, and we will report it when it happens, but the law behind Regulation P no longer requires those annual mailings.
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#2054063 - 12/14/15 07:46 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Online
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Listen to Ken. It is now the law, there is nothing the the individual regulatory agencies can do about it.
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#2054211 - 12/15/15 04:48 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Noah Wiseman
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I just want to pass along some information from the FAQs issued by the regulators on privacy:

"C.5. After I provide an initial privacy notice to my customer, the Privacy Rule requires me
to deliver privacy notices to that customer not less than annually during the
continuation of the customer relationship. What does “annually” mean?

“Annually” means at least once in any period of 12 consecutive months during which a
customer relationship exists. If you use the calendar year as your notice period, you have
the flexibility to give the first annual notice to a customer at any point in the calendar year
following the year in which the customer relationship is established. Thereafter, you are
expected to provide annual notices on a consistent basis. Any period of more than
12 consecutive months between annual notices should have an appropriate business
justification.

http://www.federalreserve.gov/regulations/cg/faq.pdf

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#2054239 - 12/15/15 06:08 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
DeeGail Offline
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Is there a statement notice that must be used to let out customers know they can view it on our website or get a copy by calling us? Or is that not needed either?

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#2054303 - 12/15/15 08:22 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Sunshine Lady Offline
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No, you are not required to provide the notice of availability of privacy on a statement.Since the privacy notice does not be delivered annually, this method of delivery goes away.

I would leave it on my webpage so that customers can find it, but you do not have to remind them each year.
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#2054546 - 12/16/15 08:54 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Elwood P. Dowd
SusieSpongehead Offline
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Colorado
Originally Posted By Ken_Pegasus
Quote:
I spoke to our EIC at the FRB Denver Branch regarding this. After consulting a few colleagues he suggested that we wait to see if the CFPB issues something.


That's disappointing. The issue might not be addressed in "examiner school," but it is addressed in high school and college courses on the U.S. legislative system. A regulation can interpret a statute passed by Congress, but it cannot change it.

When Congress passed the Expedited Funds Availability Act it indicated that "local" or "nonlocal" was determined by the two banks' geographic locations. When the FRB issued the first version of Reg CC it "corrected" the statute to say that "local" vs. "nonlocal" could be determined by referencing the transit and routing numbers on the checks. The NCUA immediately sued to represent the interests of credit unions that used "payable through" banks. They got the ruling they asked for in short order; i.e. the FRB wasn't empowered to change Congressional intent even if it was to improve its logic.

If the regulation and the statute it is supposed to interpret conflict, the language in the statute controls.


Just a follow-up...

I got a call from our EIC today. He discussed my question with additional co-workers who are more familiar with the legal aspect of these types of changes to statutes and they feel that the change became effective when the act was signed into law. Therefore we may take advantage of the change to GLBA instead of waiting for the CFPB to amend Regulation P.

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#2055001 - 12/18/15 06:11 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
mtngrrl Offline
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ABA put out a staff analysis this morning basically stating that banks who do not send a privacy notice may technically violate the regulation, it's "difficult to imagine" an examiner citing the bank when the reg conflicts with the statue.
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#2055288 - 12/22/15 03:11 PM Re: New Bill Passed - Annual Privacy Notice Eliminated DeeGail
Elwood P. Dowd Offline
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Although there was no opposition to it, legislation that would have eliminated the annual mailing failed in the preceding session of Congress. So, CFPB "reinterpreted" the regulation to add the provision that allowed a bank to eliminate the annual mailing if it let consumer customers know the "privacy" disclosure was available on demand; e.g. on the bank's web site.

In the next session, Congress did pass a statutory amendment that eliminated the annual mailing for most banks. So, CFPB's amendment is now surplusage.

If the statute no longer requires your bank to do an annual mailing, then any steps you take to make your consumer customers aware that the policy is available to them on your web site or elsewhere are gratuitous. You can do it. You can not do it.
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#2055293 - 12/22/15 03:33 PM Re: New Bill Passed - Annual Privacy Notice Eliminated mtngrrl
Elwood P. Dowd Offline
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Next to Harvey
Quote:
it's "difficult to imagine" an examiner citing the bank when the reg conflicts with the statue.


I would know that I was holding an examiner's career in my hands if he or she suggested that my bank was violating a regulation that had been Congressionally emasculated.
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#2055320 - 12/22/15 04:54 PM Re: New Bill Passed - Annual Privacy Notice Eliminated DeeGail
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Good question- this is not addressed in the FAST Act but I am thinking this isn't required.

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#2066524 - 02/29/16 03:41 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Banker57 Offline
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We do not share nonpublic information. However we have changed our Privacy Policy (not the model Privacy Notice) to address forms of social media, cookies,click stream auditing, etc. Both the model Privacy Notice and the Privacy Policy are available on our website. Are we still exempt form sending the annual privacy mailing?

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#2066528 - 02/29/16 03:51 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Banker57
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Probably not, but the question should be put to the person who suggested it was a good idea to include gratuitous, unrelated information in a legally required disclosure. The natural assumption would be that he or she thought that through before making the suggestion...
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#2068667 - 03/11/16 04:57 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Ted Dreyer
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I think "waiting for the regulators to catch up to the law" might qualify as a legitimate business reason, except that would take more than 12 months, likely.

laugh

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#2078697 - 05/13/16 08:04 PM Re: New Bill Passed - Annual Privacy Notice Eliminated SusieSpongehead
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Our shop is of the opinion that the law does override the Regulation but our regulator, the OCC, has indicated that although the FAST Act eliminated the annual notice requirement, the Regulation has not been amended yet by the CFPB and any compliance testing done during an OCC examination would be in accord with the Regulation. This opinion from the OCC in conjunction with the OCC PPM 5000-7 (REV) of February 26, 2016 which confirms the OCC's ability to assess civil monetary penalties for violations of any regulation has us a little shy about not following the annual notice requirements in the Regulation. What are other OCC regulated shops doing with your annual privacy notice this year? Any additional comments on this topic would be appreciated.

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#2078708 - 05/13/16 08:40 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Banker 1025
Elwood P. Dowd Offline
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Either contact your lawyer or the OCC's. Theirs cannot send you a bill.

If you want a guaranteed response, copy your Congressman.
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#2078860 - 05/16/16 07:20 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
David Dickinson Offline
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So their regulation is no longer supported by law. In fact, the law has changed to make their regulation in contradiction to the law, but they still expect you to comply with the regulation. Hmmm. Something sounds very odd. I'm with Ken. I'd also ask them if they skipped out on the common sense training we all received in elementary school.

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#2078898 - 05/16/16 08:57 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
MScarn6942 Offline
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I just got this back from our examiners (FDIC):

"Good catch. The FAST Act (12/5/15) amends section 503 of the GLBA, “Disclosure of institution privacy policy,” by adding an exception to the annual privacy notice requirement. According to the exception, a financial institution that:

• provides nonpublic personal information only in accordance with section 502(b)(2) or (e) or section 504(b); and
• has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to the customer in accordance with section 502,
• is not required to provide an annual privacy notice to its customers until such time as the institution fails to comply with either of the criteria."

Sounds to me like we just saved a bunch of time and money! I can hardly believe a law was passed that didn't create more work for bankers smile.
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#2078939 - 05/17/16 02:40 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
RockChucker, CAMS Offline
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The Country
"I can hardly believe a law was passed that didn't create more work for bankers smile."

Even a blind squirrel finds a nut every once in awhile.
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#2079428 - 05/19/16 07:08 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Banker 1025 Offline
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Thanks to all for your thoughts on this subject. It would be nice if the OCC would have provided the same answer that the FDIC gave in response to the question. The one thing that is consistent about compliance is that it rarely involves the application of common sense. Now it appears as though the basic application of the legal system is being ignored as well. Perhaps we will opt to seek the opinion of counsel which will surely be more economical than mailing all of those disclosures.

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#2081392 - 06/01/16 08:25 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Compliance Lover Offline
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I'm confused. Are we saying we can assume we don't have to send it anymore? What about the statement notice stating it can be found on our website? Is that no longer necessary either?

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#2081407 - 06/01/16 08:52 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Compliance Lover
Doug Hendrickson Offline
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It is no longer necessary.
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#2082676 - 06/09/16 04:27 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
complygirl Offline
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Has this been published in the federal register somewhere or where is the official law that eliminated this requirement? We are scheduled to send out annual privacy notices this month and management wants to be certain we no longer have to provide this notice. We contacted our local regulatory agency field office to discuss this change and they knew nothing about this change, which makes management just a bit nervous about not providing the annual notice.

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#2082680 - 06/09/16 04:37 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Online
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The wording in the law and the law itself is linked earlier in this post.

Regulations have yet to be issued.
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#2082811 - 06/10/16 01:10 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Online
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The FRB agrees based on new examination procedures released today:

As of December 4, 2015, section 75001 of the Fixing America’s Surface Transportation Act8 (“FAST Act”) amended section 503 of GLBA to establish an exception to the annual privacy notice requirements whereby a financial institution that meets certain criteria is not required to provide an annual privacy notice to customers. The amendment was effective upon enactment.

There are fewer requirements to qualify for the exception to providing an annual privacy notice pursuant to the FAST Act GLBA amendments than there are to qualify to use the CFPB’s alternative delivery method; any institution that meets the requirements for using the alternative delivery method is effectively excepted from delivering an annual privacy notice.

https://www.federalreserve.gov/bankinfor...27-16_CLEAN.pdf
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#2082909 - 06/10/16 03:33 PM Re: New Bill Passed - Annual Privacy Notice Eliminated rlcarey
Elwood P. Dowd Offline
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I owe you a beer! grin

I'm bloody tired of plowing the same field over and over again.
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#2082991 - 06/10/16 06:58 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
John Burnett Offline
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It also helps that those are interagency exam procedures.
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#2083385 - 06/14/16 07:12 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
STERN Offline
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OCC bank and we are not sending out notices.

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#2093191 - 08/15/16 02:53 PM Re: New Bill Passed - Annual Privacy Notice Eliminated STERN
Elwood P. Dowd Offline
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The CFPB proposed an amendment to Regulation P that would bring it into line with the statute and, apparently, do a little housekeeping. It's 40 pages and, as I regard the regulation as worthless anyway, I'm going to wait until 1) they make it into a movie or 2) it's final before spending any time with it.
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#2094297 - 08/19/16 05:04 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Elwood P. Dowd
fmissle Offline
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Originally Posted By Ken_Pegasus
The CFPB proposed an amendment to Regulation P that would bring it into line with the statute and, apparently, do a little housekeeping. It's 40 pages and, as I regard the regulation as worthless anyway, I'm going to wait until 1) they make it into a movie or 2) it's final before spending any time with it.


Worst. Movie. Ever.

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#2105801 - 11/03/16 12:35 PM Re: New Bill Passed - Annual Privacy Notice Eliminated fmissle
Elwood P. Dowd Offline
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Siggghhh, a bank examiner just told one of my clients: The annual notice has not been eliminated because the amendment to the regulation is only proposed, not final.

"You [censored] meathead, when they change the statute it no longer makes any difference what the regulation says, the statute controls!"

If you get the same dude, a copy of their examination procedures should be all the evidence you need to supply. (Repeating my statement might not be in your best, long term interests.) wink
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#2105896 - 11/03/16 06:40 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
BrianC Offline
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Another dig that I have had clients use with examiners like this..."So does that also mean I can go back to just providing $100 next business day for Reg CC case-by-case holds?"
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#2105909 - 11/03/16 07:21 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Beachbum, CRCM Offline
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sounds like we need to start to a "what you should never say to an examiner" thread.
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#2163535 - 02/07/18 08:32 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Beachbum, CRCM
TeamComply Offline
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Have any changes been made to the regulation yet to match up to the statute (from the FAST Act amendments with regard to eliminating the annual privacy notice)?

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#2163596 - 02/08/18 11:54 AM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Online
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Nope.
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#2163738 - 02/08/18 08:40 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Indy Banker Offline
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At a recent regulator roundtable discussion I listened to, the panel addressed that. They basically said the FAST Act law that was passed overrides everything else, and institutions are safe in following the law. They said a proposal will be out to revise the regulation...eventually...sometime.....

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#2163740 - 02/08/18 08:41 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
John Burnett Offline
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It's like the Bureau discovered that the exam procedures have changed because the law effectively changed the regulatory requirements (all points made earlier), so they don't need to mess with updating the regulation. Um, no. Anyone looking at the regulation and not understanding the back-story of the tardy regulation amendment will be following the rule with the annual notice requirement. It's high time the CFPB followed through.
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#2171522 - 04/03/18 03:49 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
SaaL Offline
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So we share information with an affiliate that requires we provide opt-out. I believe the FAST exemptions from annual privacy notice mailings extend only to specific exemptions in Reg P, not FCRA. So in my situation, must we continue with an annual mailing?
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#2171705 - 04/04/18 11:58 AM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Adam Witmer Online
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Originally Posted By SaaL
So we share information with an affiliate that requires we provide opt-out. I believe the FAST exemptions from annual privacy notice mailings extend only to specific exemptions in Reg P, not FCRA. So in my situation, must we continue with an annual mailing?
It is my understanding that if you include your FCRA opt-out on the Reg P model privacy form, then yes, you must continue the annual mailing. If, however, you provide a separate FCRA opt-out, then you can avoid sending the annual privacy notice and opt-out. The FCRA does not require an annual opt-out mailing, but you would have to send the privacy notice/opt-out annually if you take the optional approach and use the Reg P privacy notice for the delivery of your FCRA opt-out.

From the preamble to the July 1, 2016 proposal:
Section 624 of the FCRA and Regulation V also permit (but do not require) financial institutions to incorporate any opt-out disclosures provided under section 624 of the FCRA and subpart C of Regulation V into privacy notices provided pursuant to the GLBA and Regulation P.
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#2171744 - 04/04/18 02:24 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
SaaL Offline
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Thanks. I agree. I don't really see providing two notices as optimal even though it would help us with annual mailings. Affiliate opt-out is new for us and it is really complicating our notice process.
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