Analyzing the California Consumer Privacy Act’s Impact on Financial Institutions

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At this time, business entities across all industries are hard at work gearing up to get in compliance with the California Consumer Privacy Act of 2018 by the law’s Jan. 1, 2020 effective date. One of the more complex issues concerning the CCPA pertains to the extent to which financial institutions governed by the Gramm-Leach-Bliley Act must adhere to the mandates of the CCPA. While California’s new privacy law does afford a carve-out for financial institutions, it does not provide a comprehensive, across-the-board “get out of jail free” card for the financial services industry. Consequently, financial institutions will need to take actionable steps to prepare for compliance with the CCPA by the time the new privacy law goes into effect at the beginning of next year.