[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Notices]
[Pages 43264-43265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15651]
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NATIONAL CREDIT UNION ADMINISTRATION
Agency Information Collection Activities: Privacy of Consumer
Financial Information Recordkeeping and Disclosure Requirements Under
Gramm-Leach-Bliley Act and Regulation P, Comment Request
AGENCY: National Credit Union Administration (NCUA).
ACTION: Notice and request for comment.
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SUMMARY: NCUA, as part of its continuing effort to reduce paperwork and
respondent burden, invites the general public and other Federal
agencies to comment on the submission for reinstatement of a previously
approved collection, as required by the Paperwork Reduction Act of 1995
(Pub.
[[Page 43265]]
L. 104-13, 44 U.S.C. Chapter 35). NCUA is soliciting comment on the
reinstatement of the information collection described below.
DATES: Comments should be received on or before August 30, 2016 to be
assured consideration.
ADDRESSES: Interested persons are invited to submit written comments on
the information collection to Troy Hillier, National Credit Union
Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428; Fax
No. 703-837-2861; or Email at [email protected].
FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be directed to the address above.
SUPPLEMENTARY INFORMATION:
I. Abstract and Request for Comments
Title V, Subtitle A of the Gramm-Leach-Bliley Act (Act), Public Law
106-102, governs the treatment of nonpublic personal information about
consumers by financial institutions. Section 502 of the Act, subject to
certain exceptions, prohibits a financial institution from disclosing
nonpublic personal information about a consumer to nonaffiliated third
parties, unless the institution satisfies various notice and opt-out
requirements, and provided the consumer has not elected to opt out of
the disclosure. Section 503 of the Act requires a financial institution
to provide notice of its privacy policies and practices to its
customers. Section 504 of the Act granted rulemaking authority for the
privacy provisions of the Act to be shared by eight Federal agencies:
The Board of Governors of the Federal Reserve System (FRB), the Federal
Deposit Insurance Corporation (FDIC), the Office of the Comptroller of
the Currency (OCC), the Office of Thrift Supervision (OTS), the
National Credit Union Administration (NCUA), the Federal Trade
Commission (FTC), the Securities and Exchange Commission (SEC), and the
Commodity Futures Trading Commission (CFTC). Each of the agencies
issued rules (which were consistent and comparable) to implement the
Act's privacy provisions.\1\
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\1\ 12 CFR 216 (FRB); 12 CFR 332 (FDIC); 12 CFR 40 (OCC); 12 CFR
716 and 741.220 (NCUA); 16 CFR 313 (FTC); 17 CFR 248 (SEC); 17 CFR
160 (CFTC).
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The Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA)
amended a number of consumer financial protection laws, including the
Act. Among other changes, the DFA transferred rulemaking authority for
most of Subtitle A of Title V of the Act, with respect to financial
institutions described in section 504(a)(1)(A) of the Act, from FRB,
FDIC, OCC, OTS, and NCUA to the Consumer Financial Protection Bureau
(CFPB). Pursuant to the DFA and the Act, as amended, the CFPB
promulgated Regulation P, 12 CFR 1016, to implement those privacy
provisions of the Act for which CFPB has rulemaking authority.
Regulation P implements the requirements of the Act to provide
consumers with financial institutions' privacy policies and practices,
as well as describes when the consumer's information may be shared with
nonaffiliated third parties, and provides a method for consumers to
prevent disclosure of their information to nonaffiliated third parties
by opting out of that disclosure. Regulation P details the specifics of
how the Act should be implemented, which companies and situations this
applies to, and the method of delivering the information to consumers.
Regulation P includes model forms that can be used to comply with
the disclosure requirements of the Act and Regulation P, although the
use of the model forms is not required. See Appendix to Regulation P.
The collection of information pursuant to covers the development of
privacy policies by the financial institutions and the dissemination of
those policies to their customers upon starting a customer
relationship, annually for existing customers, and in the event of any
covered changes to the privacy policy. This collection also accounts
for the burden to customers who choose to exercise their opt-out rights
to prevent disclosure of financial information to nonaffiliated
parties.
Comments submitted in response to this notice will be summarized
and included in the request for Office of Management and Budget
approval. All comments will become a matter of public record. The
public is invited to submit comments concerning: (a) Whether the
collection of information is necessary for the proper performance of
the function of the agency, including whether the information will have
practical utility; (b) the accuracy of the agency's estimate of the
burden of the collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of the information on the
respondents, including the use of automated collection techniques or
other forms of information technology.
II. Data
Title: Privacy of Consumer Financial Information Recordkeeping and
Disclosure Requirements Under the Gramm-Leach-Bliley Act and Regulation
P, 12 CFR 1016.
OMB Number: 3133-0163.
Type of Review: Reinstatement with change of a previously approved
collection.
Description: Regulation P (12 CFR 1016) requires credit unions to
disclose its privacy policies to customers as well as offer customers a
reasonable opportunity to opt out--in whole or in part--of those
policies to further restrict the release of their personal financial
information to nonaffiliated third parties. Credit unions are required
to provide an initial privacy notice to customers that is clear and
conspicuous, an annual notice of the privacy policies and practices of
the institution, a revised notice to customers if triggered by specific
changes to the existing policy, and a notice of the right of the
customer to opt out of the institution's information sharing practices.
Consumers who choose to exercise their opt-out right document this
choice by returning an opt-out form or other permissible method.
Respondents: Federally-insured credit unions and any credit union
member who chooses to exercise opt-out rights.
Estimated Number of Respondents: Federally-insured credit unions:
Initial notice, 73; annual and revised notices, 5,954; opt-out notice,
5,954. Members who opt-out, 1,140,000.
Frequency of Response: Annually for most credit unions for both
annual notice and annual notification of opt-out rights. Once for
credit union members choosing to opt-out.
Estimated Burden Hours per Response: Federally-insured credit
unions: Initial notice, 80 hours; annual and revised notice, 8 hours;
opt-out notice, 8 hours. Members who opt-out, 15 minutes.
Estimated Total Annual Burden Hours: 386,104.
By Gerard Poliquin, Secretary of the Board, the National Credit
Union Administration, on June 22, 2016.
Dated: June 28, 2016.
Troy S. Hillier,
NCUA PRA Clearance Officer.
[FR Doc. 2016-15651 Filed 6-30-16; 8:45 am]
BILLING CODE 7535-01-P