Federal Deposit Insurance Corporation Adopts New Model Privacy Form
Final model privacy notice forms created collaboratively by several federal financial agencies were adopted by the Federal Deposit Insurance Corporation (FDIC), October 20, 2009.
The new model form will replace the current Sample Clauses which were serving as the Gramm-Leach-Bliley Act (GLB) privacy rules' safe harbor. Thirty days after the new forms are published in the Federal Register there will be a compliance transition period which will continue through December 31, 2010. Privacy notices that either use the new model forms or continue to use the existing Sample Clauses, will be protected while the GLB privacy notice rules will provide safe harbor during the transitional period. A financial institution that posts a privacy notice online during the transition period will have one year safe harbor from the date of posting. Effective January 1, 2011, financial companies will no longer be able to use the Sample Clauses. Any privacy notices posted on or after that date will be required to use the new model forms.
The model forms and Agencies' explanations of these forms are subject to change.