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Why safeguards rule proposal matters to CUs
A new NAFCU Compliance Blog post explains why a proposal to update the Gramm-Leach-Bliley Act's (GLBA) safeguards rule matters to the industry – even though it doesn't specifically apply to federally-insured credit unions – following questions from credit union compliance officers.
Under the safeguards rule, certain enforcement agencies must establish "appropriate safeguards" to protect customer records for the financial institutions under their jurisdiction, wrote NAFCU Senior Regulatory Compliance Counsel Elizabeth LaBerge. The FTC is currently looking to update and amend its own regulations and implementation of the rule.
While the FTC's updated regulations would have no direct effect on credit unions, LaBerge said that credit unions benefit when there are stronger regulatory requirements from the FTC. Earlier in March, NAFCU wrote to the FTC to support the proposal and to recommend even more robust regulations.
To better understand the FTC's proposed regulations and what they could mean for credit unions, read LaBerge's full blog post here.