Certified Regulatory Compliance Manager (CRCM) — Question 200

Initial privacy notice-12CFR332.4; 12CFR40.4; 12 CFR 216.4; 12 CFR 573.4 says that:

Answer options

• A. A notice must be given to a consumer before the institution discloses any nonpublic personal information about the consumer to a nonaffiliated third party, unless the disclosure is on the exempt list
• B. A notice is not required to be given to a consumer who is not a customer if the financial institution does not disclose any nonpublic personal information about the consumer to any nonaffiliated third party, other than as authorized by this regulation
• C. Only one notice is required to be provided on joint accounts. Therefore only one notice need to be provided to consumer loan customers even if there is more than one borrower and even if there is a separate guarantor
• D. All of these

Correct answer: D

Explanation

The correct answer is D because all the statements accurately reflect the requirements set forth in the regulations regarding privacy notices. Option A specifies the notice requirement before disclosing information, Option B clarifies when a notice is not needed, and Option C addresses joint accounts and consumer loans. All are correct and therefore support option D.