Legislation creating a special Presidential commission to study and recommend ways of improving personal financial privacy was introduced last week by Rep. Robert Ney (R-OH).
The Financial Privacy and National Security Enhancement Act (HR-3068) calls for creating an 11-member panel to review the policies, practices and regulation of the financial services industry in protecting the privacy of consumer financial information. It would prohibit states from imposing new or tighter financial privacy laws until after the panel files its final report with both the President and Congress.
That report is due no later than March 31, 2005.
The legislation would require the panel of top government officials and others to examine six specific areas.
They are:
The effect existing state privacy laws have on the federal government’s ability to investigate money laundering, fraud and identity theft Whether financial institutions are providing consumers with readily understandable privacy notices
The cost to financial institutions to provide those notices
What privacy concerns are not addressed under existing financial privacy laws, rules and regulations
Uniform agreements among financial regulators on what constitutes financial privacy and how technological developments and changes may possibly affect a person’s financial privacy
The impact current state and federal privacy laws have on personal financial privacy and their cost to the financial services industry
Members of the study panel would include the chairmen of the Securities and Exchange Commission; the Federal Reserve Board; Secretary of the Treasury; the U.S. Attorney General; the Speaker of the House of Representatives, the minority leader of the House; the majority and minority leaders of the Senate, a state insurance commissioner, and two members of the public.
Although panel members would serve without pay, the legislation would authorize them to hire a staff, including experts and consultants; hold hearings and have unrestricted access to information in the files of various government agencies.
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