FTC GLBA Safeguards Rule (16 CFR Part 314) FTC-Safeguards-Scope-Defs: Scope, Definitions and Financial Institution Applicability (16 CFR 314.1, 314.2)

16 CFR 314.1 purpose + scope; 314.2 definitions. PURPOSE: to establish standards for safeguarding customer information held by financial institutions under FTC jurisdiction + implementing Title V of GLBA. SCOPE: applies to FINANCIAL INSTITUTIONS under FTC jurisdiction (i.e. not supervised by federal banking agencies). FINANCIAL INSTITUTION = any institution the business of which is engaging in financial activities described in 12 USC 1843(k); the 2021 amendments EXPANDED the definition to include FINDERS (entities that introduce buyers and sellers of financial products). EXAMPLES: consumer reporting agencies + finance companies + mortgage brokers + automobile dealers + payday lenders + tax preparation firms + non-bank lenders + collection agencies + investment advisors not registered with SEC + finders. CUSTOMER INFORMATION: nonpublic personal information about a consumer obtained in connection with a financial product or service - includes both data the institution collects + data received from another financial institution. NONPUBLIC PERSONAL INFORMATION (NPI) per GLBA + the Privacy Rule (16 CFR Part 313): personally identifiable financial information collected in connection with a financial product or service - excludes publicly available information. EXEMPTIONS: institutions maintaining customer information of FEWER THAN 5,000 CONSUMERS may use SIMPLIFIED COMPLIANCE under 314.6.