[Glossary](https://telxpress.com/glossary/) / Security & compliance # GLBA **GLBA** (the Gramm-Leach-Bliley Act) is the federal law requiring financial institutions to explain how they share customers' nonpublic personal information and to protect that information with a security program. - Security & compliance - Updated October 11, 2026 - Written by the Telxpress advisory team 01 In depth ## What it is, why it matters and *what to ask a vendor* GLBA has two parts that matter day to day. The Privacy Rule requires clear notices about information sharing and an opt-out for certain disclosures. The Safeguards Rule requires an information security program with administrative, technical and physical safeguards. Banks are supervised by their banking regulators; the FTC covers non-bank institutions such as dealers, lenders and advisors. For a growing financial firm the law follows the customer data into every system: the CRM, the phone recordings, the video meetings with clients and the vendors behind them. Adding an AI agent that answers client calls means adding a service provider who must be vetted and bound by contract. Ask vendors how they protect nonpublic personal information at rest and in transit, who can access it, how they support your vendor-oversight duties and whether they will sign safeguards terms. Ask your compliance officer which regulator supervises you, because the detailed expectations differ. This entry is a definition, not legal advice. 02 Related terms ## Terms that usually come up *alongside it* - Security & compliance ### [FTC Safeguards Rule](https://telxpress.com/glossary/ftc-safeguards-rule/) The FTC Safeguards Rule requires non-bank financial institutions, including car dealerships that arrange financing, to keep a written information security program with named elements such as risk assessments, access controls, encryption and multi-factor authentication. - Security & compliance ### [MFA (multi-factor authentication)](https://telxpress.com/glossary/mfa/) Multi-factor authentication (MFA) requires a second proof of identity beyond a password, such as a code from an app or a hardware key, and it defeats most attacks that rely on stolen passwords. - Security & compliance ### [HIPAA business associate agreement](https://telxpress.com/glossary/hipaa-business-associate-agreement/) A HIPAA business associate agreement (BAA) is the written contract a healthcare provider must have with any vendor that creates, receives, stores or transmits protected health information on its behalf. - AI ### [AI governance policy](https://telxpress.com/glossary/ai-governance-policy/) An AI governance policy is the written set of rules a business adopts for how AI tools may be used, what data they may touch, who approves them and how their output is checked. 03 At Telxpress ## Where this shows up *at Telxpress* The pages and articles where this term does real work: what we advise, build and support. - Industry ### [AI & Business Technology for Financial Services](https://telxpress.com/industries/financial-services/) AI use cases for banks, advisors and lenders with GLBA, FINRA and SEC recordkeeping in mind, plus the systems we install and support. - Page ### [Business Networking, Firewalls & Managed Wi-Fi](https://telxpress.com/solutions/business-technology/networking/) Switching, routing, Fortinet firewalls, Ubiquiti and Cisco Meraki Wi-Fi and managed network services for offices that depend on reliable connections. - Page ### [AI Agents & Business Automation](https://telxpress.com/solutions/ai/) AI voice, sales and support agents plus CRM and workflow automation, deployed and supported by our team. Based in Irvine, CA. 04 Sources ## Public *references* The standard or law this definition rests on, as published by its owner. Fetched and checked on the review date above. - [FTC: Gramm-Leach-Bliley Act](https://www.ftc.gov/business-guidance/privacy-security/gramm-leach-bliley-act) ftc.gov - [15 U.S.C. 6801, protection of nonpublic personal information (Cornell LII)](https://www.law.cornell.edu/uscode/text/15/6801) law.cornell.edu Next step ## Want This Applied *to Your Business?* Book a free 30-minute AI readiness consultation. You'll leave with three AI opportunities specific to your business, whether you work with us or not. [Book My Free Consultation](https://telxpress.com/book/) [Take the Free AI Readiness Assessment](https://telxpress.com/ai-readiness/) [Or call 24/7: (949) 861-4500](tel:+19498614500) Last reviewed: October 11, 2026. Published by Telxpress, Irvine, CA.