Federal Reserve System

Pursuant to a legislative requirement, GAO reviewed the Federal Reserve System's Board of Governors' major rule on the privacy of consumer financial information. GAO noted that the: (1) final rule implements notice requirements and restrictions on a financial institution's ability to disclose nonpublic personal information about consumers to nonaffiliated third parties; (2) rule also prohibits a financial institution from disclosing such information to nonaffiliated third parties unless the institution satisfies various notice and opt-out requirements and the consumer has not elected to opt out of the disclosure; (3) final rule requires institutions to provide its customers with a notice of its privacy policies and practices; and (4) Board of Governors complied with applicable requirements in promulgating the rule.