Financial Privacy

AAA

DEFINITION of 'Financial Privacy'

A term used to encompass a wide variety of privacy issues. It relates to not only the use of information within financial institutions but also externally. Full financial privacy prohibits the selling of consumers information to companies who wish to use it for telemarketing, marketing or soliciting customers without their consent.

INVESTOPEDIA EXPLAINS 'Financial Privacy'

It also prohibits the sharing of client information to affiliates of the institution as well. For example: A customer holds a checking account at a bank. The bank has an investment division as well as an insurance division. The bank may give information to the client about the other needs served by their external divisions, but not vice versa.

RELATED TERMS
  1. Fair Credit Reporting Act - FCRA

    The act that regulates the collection of credit information and ...
  2. Bank Secrecy Act - BSA

    Government legislation that was created in 1970 to prevent financial ...
  3. Financial Information Exchange ...

    A financial information exchange (FIX) protocol system used by ...
  4. Suspicious Activity Report - SAR

    One of the tools provided under the Bank Secrecy Act (BSA) as ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. USA Patriot Act

    A law passed shortly after the September 11, 2001, terrorist ...
Related Articles
  1. Identity Theft: How To Avoid It
    Insurance

    Identity Theft: How To Avoid It

  2. Identity Theft: Who To Call For Help
    Credit & Loans

    Identity Theft: Who To Call For Help

  3. Tips For Keeping Your Financial Data ...
    Personal Finance

    Tips For Keeping Your Financial Data ...

  4. What does the law say about non-U.S. ...
    Investing

    What does the law say about non-U.S. ...

Hot Definitions
  1. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  2. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  3. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  4. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  5. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena ...
Trading Center