What is the purpose of the Gramm-Leach-Bliley Act (GLBA)?

The Gramm-Leach-Bliley Act (GLBA) is primarily focused on protecting the confidentiality and integrity of consumer financial information. The legislation requires financial institutions to implement measures for safeguarding sensitive customer data, ensuring that personal information is kept private and secure. This includes the requirement for these institutions to provide privacy notices to consumers and to establish procedures for safeguarding information against unauthorized access and data breaches.

By prioritizing the confidentiality of consumer information, the act addresses the risks associated with the sharing and mishandling of personal financial data, especially as financial services have evolved to allow more integrated services among banks, securities firms, and insurance companies. It establishes a framework for financial institutions' practices in dealing with such information, thereby enhancing consumer trust in the financial system.

In contrast, other choices focus on aims that do not align with the core intent of the GLBA. The act is not about eliminating consumer information or standardizing financial transactions across institutions, nor does it involve regulating interest rates. These aspects fall outside the purview of the GLBA, emphasizing why the chosen answer accurately reflects the law's primary purpose.