The CFTC approved a proposed rule to amend Rule 160.5, which requires certain "covered persons" (i.e., FCMs, RFEDs, CTAs, CPOs, IBs, MSPs and SDs) to provide annual privacy notices to customers at least once a year during the life of the customer relationship. The proposed revisions implement the Fixing America's Surface Transportation Act's (FAST Act) December 2015 statutory amendment to the Gramm-Leach-Bliley Act ("GLB Act").

Under the proposed rule, these annual privacy notices would no longer be required where certain conditions are satisfied, i.e., where the covered person:

  • "provides nonpublic personal information to nonaffiliated third parties only in accordance with the provisions of [Rules] 160.13, 160.14, 160.15 and any other exceptions adopted by the Commission pursuant to" GLB Act Section 504(b); and
  • has not amended its policies with respect to disclosing nonpublic personal information from the policies that were disclosed to the customer under Rule 160.6(a)(2) through (5) and Rule 160.6(a)(9) "in the most recent privacy notice provided to such customer pursuant to" CFTC Part 160.

CFTC staff stated that it worked in tandem with the Consumer of Financial Protection Bureau ("CFPB") to make sure that the proposal is in alignment with recently finalized rules by the CFPB. CFTC Chair J. Christopher Giancarlo described the proposal as a "good demonstration of this Commission's commitment to supporting good governance."

Comments on the proposal must be submitted within 60 days of publication in the Federal Register.

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