News

OAKLAND, Calif.--(BUSINESS WIRE)--April 25, 2001

Consumers will soon enjoy new privacy protections from financial
institutions provided by the Gramm-Leach Bliley Act (GLB). Beginning
July 1, the new law places privacy requirements governing the share of
personal financial information.

"New technologies and the ease at which information can be shared has
spawned many new laws and regulations aimed at preventing the
unauthorized sharing of personal information," said Gene Brouillette,
an independent insurance agent at Brouillette Insurance Services, in
San Diego. "The requirements outlined in GLB are just one of the many
indications that privacy will be a top concern among 21st Century
consumers."

A recent Harris Poll shows 90 percent of Americans are concerned about
threats to personal privacy. Four in five believe consumers have lost
control over how their personal information is used.

The act imposes three basic privacy obligations on financial institutions.

First, beginning July 1, financial institutions must provide all
customers with an initial and annual notice that describes the manner
in which their nonpublic personal information is collected,
maintained, and disseminated.

Second, before sharing nonpublic personal information about a consumer
with a non-affiliated third party the consumer must be notified of the
right to prohibit the sharing of such information.

Third, the act requires that financial institutions that collect or
maintain a customer's nonpublic personal information must institute
mechanisms for protecting the security and integrity of that
information.