What type of notice does the Gramm-Leach-Bliley Act require financial institutions to provide?

The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, mandates that financial institutions provide a Privacy Notice to their customers. This Privacy Notice is essential because it informs consumers about the institution's practices regarding the collection, use, and sharing of their personal financial information.

The act aims to ensure that individuals have a clear understanding of how their personal data is handled, to whom it might be disclosed, and the rights they have regarding their information. This requirement enhances consumer protection by promoting transparency and giving consumers more control over their private information.

In contrast, the other options do not align with the requirements set forth by the act. A Service Notice would pertain to service-related notifications, a Security Notice might imply a focus on physical or digital security alerts, and a Compliance Notice isn't specifically required under the Gramm-Leach-Bliley Act. Therefore, the correct identification of the Privacy Notice underscores its importance in the context of financial institution operations and consumer rights.