In a major, hard-fought victory for the profession, President Bush on Oct. 13 signed into law the Financial Services Regulatory Relief Act of 2006 containing a provision that exempts CPAs from the Gramm-Leach-Bliley Act’s annual privacy notification requirement. The exemption became effective on that date.

Upon Congress passing the bill in Sept., AICPA President and Chief Executive Officer Barry Melancon said, “This is wonderful news and a win for both CPA practitioners and their clients. The disclosure statements are often confusing to clients and they are expensive and time-consuming for CPAs to prepare.”

Melancon said that the AICPA had worked with lawmakers since enactment of the Gramm-Leach-Bliley Act to achieve the change, which was possible because CPAs are certified or licensed by state boards of accountancy and are already subject to state laws and regulations that prohibit disclosure of nonpublic personal information without the expressed consent of the client.

“The Gramm-Leach-Bliley requirement was redundant for CPAs, as well as a regulatory burden,” Melancon said. “We thank Representatives Mark Kennedy (R-MN) and Collin Peterson (D-MN) for taking the lead in the House to correct this inequity. It was their efforts to exempt CPAs that caused the provision initially to be included in the Financial Services Regulatory Relief Act of 2006. We also appreciate the support of Senators Mike Enzi (R-WY) and Debbie Stabenow (D-MI), who championed the exemption in the Senate,” he added.

The House passed the Financial Services Regulatory Relief Act of 2006 on Sept. 27, 2006, by a vote of 417-0. The Senate unanimously passed it on Sept. 30, 2006.