Under the Financial Privacy rule, how often must the privacy notice be provided after the initial disclosure?

• A. Monthly
• B. Annually
• C. Quarterly
• D. At the consumer's request

Answer: (B)

The key idea is the annual privacy notice requirement. Under the Financial Privacy Rule, a financial institution must tell customers, at the time a relationship is opened and then at least once every year afterward, how their nonpublic personal information is collected, used, and shared. This annual notice keeps customers informed about privacy practices and their rights, such as opting out of certain sharing. Notices aren’t sent monthly or quarterly, and while a consumer can request a copy, the standard obligation is to provide the notice annually.