District Circular Letters

February 8, 2001

BANKING SUPERVISON AND REGULATION:
REGULATION P: PRIVACY OF FINANCIAL
INFORMATION OFFER TO REVIEW DISCLOSURES

To All State Member Banks
in the Twelfth Federal Reserve District

Sound Compliance Planning and Proper Disclosure to Customers

Title V of the Gramm-Leach-Bliley Act sets forth provisions addressing the rights of a consumer with respect to the sharing of non-public personal financial information. Regulation P describes the following:

• The obligations of the financial institution to inform the consumer of its information sharing practices
• The consumer’s rights to opt-out of information sharing
• The security provided for consumer information by the institution

The rule was effective November 13, 2000, and full compliance is mandatory on July 1, 2001. However, many of the rule’s provisions, such as the dissemination of privacy and opt-out notices, and the expiration of a reasonable opt-out time period, must be completed before July 1, 2001.

Regulation P Review

To assist you in meeting these deadlines, we are offering to review and comment on your bank’s plan, policy, and/or disclosures with respect to Regulation P. In order to participate, we must receive your documents no later than March 15, 2001. Please include with your documents the name of an individual we may contact with questions. We will review and respond to your material in a reasonable time so that you can consider our comments before the mandatory compliance dates.

Additional Information

Please mail your documents to the attention of Senior Examiner Paul Dillard at the address shown above or e-mail electronic documents to him at Paul Dillard. Please direct any further questions to Mr. Dillard at (415) 974-2961.

FEDERAL RESERVE BANK OF SAN FRANCISCO