What does the Gramm-Leach-Bliley Act require from financial institutions?

The Gramm-Leach-Bliley Act (GLBA) was enacted to protect consumers' personal financial information held by financial institutions. One of its primary requirements is that these institutions must establish privacy policies and procedures that ensure the security and confidentiality of customer data. This means that financial institutions are obligated to implement measures to safeguard sensitive information and to provide clear disclosures regarding their data-sharing practices with customers.

The act emphasizes the importance of protecting personal customer information from unauthorized access and use, which aligns with the financial industry's responsibility to maintain consumer trust. Specifically, the GLBA requires financial institutions to inform consumers about the categories of information they collect and how that information is shared and protected. This commitment to confidentiality and security is essential for maintaining consumer confidence in financial systems and services.

In contrast, the other choices do not align with the intentions and requirements of the Gramm-Leach-Bliley Act. The act does not mandate lower interest rates, comprehensive insurance coverage, or allow for unlimited sharing of customer information, which could compromise confidentiality and security.