Consumer Financial Information Regulation
|FINAL RULE: Consumer Financial Information Regulation Approved at CFTC Open Meeting, July 7, 2011|
|Final Rule Issue||Effective Date||Compliance Date, SD/MSPs|
|July 22, 2011||November 21, 2011||October 12, 2012; no-action relief pending|
On July 7, 2011, the CFTC held an open meeting to discuss five final rulemakings under the Dodd-Frank Act. Among the rules approved at the meeting was a final rule regarding the expansion of consumer privacy protections under the Gramm-Leach-Bliley Act.
The final regulations:
- broaden the scope of Part 160 of the CFTC’s regulations to include swap dealers and major swap participants;
- rename the title of Part 160 to “Privacy of Consumer Financial Information under the Gramm-Leach-Bliley Act,” in order to harmonize the language in this rule with other, and
- Change all references in Part 160 to the Federal Trade Commission (FTC) to refer instead to the Consumer Financial Protection Bureau.
The final rule appeared in the Federal Register on July 22, 2011, and became effective on November 21, 2011 for CPOs, CTAs, FCMs and IBs. The compliance date for swap dealers and major swap participants was October 12, 2012 but, as of December 2012, is under no-action relief from the CFTC.
The Dodd-Frank Act amended Title V of the Gramm-Leach-Bliley Act to, among other things, give the CFTC the authority to regulate entities that are subject to the Commission’s jurisdiction to provide certain privacy protections for consumer financial information. The affected entities include:
- futures commission merchants,
- retail foreign exchange dealers,
- commodity trading advisors,
- commodity pool operators,
- introducing brokers, and
- swap dealers and major swap participants.
At its October 19, 2010 open meeting, approved a proposed rule regarding certain protections for the privacy of nonpublic, consumer information by entities that are subject to Commission jurisdiction.
Note: On December 28, 2012, the CFTC published in the Federal Register a revision to the final rule that reinstates two appendices containing templates of a sample privacy form ("Appendix A - Model Form") and sample disclosure clauses ("Appendix B - Sample Clauses"). These forms can be found in the Federal Register entry below.
Related Documents: Fact Sheet; Federal Register Entries for Final Rule, Proposed Rule, and Sample Privacy Forms
- Open Meeting on Five Final Rule Proposals under the Dodd-Frank Act. CFTC. Retrieved on July 7, 2011.
- [http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-17711a.pdf Final Regulations to Expand the Scope of Consumer Privacy Protections Under the Gramm-Leach-Bliley Act]. CFTC. Retrieved on July 7, 2011.
- Open Meeting on Second Series of Proposed Rules under the Dodd-Frank Act. CFTC. Retrieved on July 1, 2011.