Regulatory compliance has become an increasingly important part of the financial services industry in recent years. The Sarbanes-Oxley Act (SOX) was passed in 2002 to protect investors from fraudulent financial information from companies. The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act, was enacted in 1999 to eliminate barriers that prohibited the consolidation of commercial banks, investment banks, securities firms and insurance companies. This law requires financial companies to inform customers of their policies regarding the privacy of personal financial information.
Customers can exclude themselves from certain categories of information that the company provides to other companies, but allow the company to share other types of information. The SOX guidelines provide best practice standards that financial institutions must meet in order to build public trust and protect the sensitive data of stakeholders. While SOX applies to all publicly traded and publicly traded companies operating in the United States, it is particularly relevant to financial services known for managing large volumes of highly confidential data. If a financial company does not plan to share customer information, except as permitted by law, it will indicate this in the notice; in this case, customers will not have the right to opt out.
The GLBA law allows financial companies to share certain information about customers without giving them the right to opt out. If customers don't unsubscribe within a reasonable period of time (usually about 30 days after the company sends the notification by mail), the company is free to share certain personal financial information. If customers have a joint account with another person (for example, a joint checking account or a mortgage loan), the financial company can send a notification to one or both people on the account. The guidelines establish the best technological risk management practices for financial services and were intended to ensure that financial institutions implemented adequate and robust risk management systems and operating processes.
Customers use their bank cards to make purchases knowing that their financial institution has adequate security measures in place to protect against the theft of their data. WSSC Water, in partnership with the Salvation Army, receives donations from generous customers, community members and donor employees, and 100% of all donations go directly to people in need. Financial companies in Capitol Heights, MD must adhere to strict regulations when it comes to protecting customer information. The Gramm-Leach-Bliley Act requires them to inform customers of their policies regarding privacy.
Customers can choose which types of information they want shared with other companies. The Sarbanes-Oxley Act ensures that investors are protected from fraudulent financial information from companies. The guidelines set forth by these acts provide best practice standards for financial institutions when it comes to risk management systems and operating processes. Customers can trust that their bank cards are secure when making purchases as their financial institution has adequate security measures in place.