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Question 206

Initial privacy notice-12CFR332.4; 12CFR40.4; 12 CFR 216.4; 12 CFR 573.4 says that:

    Correct Answer: A

    A notice must be given to a consumer before the institution discloses any nonpublic personal information about the consumer to a nonaffiliated third party, unless the disclosure is on the exempt list. This correctly reflects the key requirement under initial privacy notice regulations, ensuring that consumers are informed about the use and sharing of their personal information.

Discussion
Cam22Option: D

There aren't questions like this on the exam. The correct answer is D. All of these. Each statement reflects different aspects of the requirements for initial privacy notices under Regulation P, which implements the privacy provisions of the Gramm-Leach-Bliley Act (GLBA) across various regulatory authorities (as indicated by the different CFR citations for banks, savings associations, and other financial institutions). These aspects include the necessity of providing a privacy notice before disclosing nonpublic personal information to nonaffiliated third parties (unless exempt), the conditions under which a notice is not required for non-customers, and the protocol for issuing notices for joint accounts or loans with multiple borrowers or guarantors.