What is Non-Public Information (NPI)?

Technology - What is Non-Public Information (NPI)

Non-Public Information (NPI) is the personally identifiable financial data consumers provide to an institution as part of an exchange or service.

NPI can include names, addresses, phone numbers, social security numbers, and credit histories. To abide by privacy regulations, financial institutions must protect this data.


Technology is the term for all humans’ tools and methods to produce goods and services. This includes physical tools like utensils or machines and virtual technologies like computer software and business methods.

Technology plays a vital role in our society, improving comfort and quality of life while contributing to medical progress. However, it can also have detrimental effects on the environment, potentially harming individuals or groups in various ways.

Technological devices often produce unwanted by-products, known as pollution, that deplete natural resources. Furthermore, this raises new ethical questions and tests traditional norms.

It can also disrupt existing social hierarchies and lead to social inequality. In extreme cases, it can potentially destroy an entire society or environment.

Though technology is often associated with science and engineering, it is an integral part of everyday life. Applying knowledge creatively to achieve practical outcomes involves people and machines – a fundamental aspect of human nature.

Technology has enabled many advancements and is often seen as a positive force. However, some critics contend that technology does not improve the human condition but worsens it.

Despite these arguments, people still rely on technology to enhance their lives and enable them to function better in various ways. That is why it is so important for us to comprehend the different types of technology available and how they may influence our daily activities.

Non-Public Information (NPI) is a term for personal data that is kept private and should not be accessible to the public. This could include Social Security Numbers, bank information, and other personally identifiable financial data forms.

NPI is safeguarded by the Gramm-Leach-Bliley Act (GLBA), which requires financial institutions to safeguard NPI in accordance with specific rules. These guidelines outline how financial institutions must collect, use and disclose NPI.

Due to GLBA, financial institutions must implement policies, procedures, and data security protocols tailored to their business operations. These measures aim to protect NPI privacy by prohibiting unauthorized collection, use, or disclosure of NPI.


What is Non-Public Information (NPI)?

NPI refers to data collected about consumers by financial institutions and protected under the Gramm-Leach-Bliley Act. This restricts how these institutions can share this data with nonaffiliated third parties.

In general, NPI refers to personal information about an individual that is not publicly accessible, such as government-issued identification numbers and credit card details. NPI may also include data on an individual’s finances or spending habits and Internet activity (e.g., search history).

Contrary to popular belief, “public” information refers to information about a company that has been made available to investors in the general market through press releases or filings. Under Gramm-Leach-Bliley law, information is considered public if it has been disseminated or made accessible to all investors rather than just certain groups of individuals.

For instance, learning that a pharmaceutical company has developed an AIDS treatment that could generate enormous profits is material information since it would likely affect stock value. On the other hand, if a checkout clerk at a large grocery store discovers that their employer will cut hours next month, this wouldn’t affect market value of stock in that company.

Under the SEC’s insider trading regulations, trading on information obtained from an unaffiliated source is illegal. This includes buying or selling stocks or bonds or taking other investment actions such as derivatives (e.g., swaps or option contracts), mutual funds or other alternative investments based on this data.

Although certain exceptions apply, members and candidates should ensure their firms create policies and procedures regarding employee and proprietary trading, investment recommendations, and interdepartmental communications; furthermore, those processes should be supported by appropriate training for staff members. These processes should consider the firm’s particular characteristics in terms of size and business nature.

Data Privacy

Data privacy is safeguarding personal information such as names, locations, and behavior. Retaining data private is essential for protecting consumers from identity theft, online fraud, and other crimes; it also necessitates compliance by companies collecting the data.

Consumer data regulations protect customers from unfair practices and heavy fines. Without them, organizations could sell customer information to third parties for profit without user consent – damaging brand reputation, hindering innovation, and leading to costly litigation.

Personally identifiable information, or PII, is the most sensitive data type. This includes names, addresses, Social Security numbers, credit card data, and date of birth – among other points that can identify an individual. PII regulations are enforced by both the General Services Administration (GSA) and state data protection laws alike.

Another regulated data type is non-public information (NPI). This refers to information not publicly accessible, such as a customer’s bank account number or the social security number of someone with a criminal past.

Data shared throughout the mortgage supply chain can be more vulnerable to breaches. Therefore, it’s essential for mortgage companies to be familiar with NPI, how to secure it, and which compliance programs exist.

NPIs may contain a variety of data, such as application details, loan amounts, credit card numbers and other transactional info. It could even include health data like medical history protected under the Health Insurance Portability and Accountability Act (HIPAA).

In addition to federal regulation, various state laws influence how businesses store consumer information. These rules exist to safeguard customers’ rights and guarantee businesses remain current with technology.

California, for instance, has a Consumer Data Privacy Act which sets forth stringent requirements when collecting and sharing private information. Companies failing to abide by these laws could face substantial fines or even lawsuits. Furthermore, citizens have the right to request that their personal data be deleted or altered.

Qualifying Information

Qualifying information refers to a set of questions sales professionals use to assess prospects against their ideal customer profile (ICP). Qualification is an integral step in the sales process and can help sales teams close more deals.

Sales professionals may qualify a lead by asking simple stock questions, but they may also inquire more in-depth questions about the prospect’s business needs and whether or not they match your ideal customer profile. The answers to these inquiries will determine whether they qualify to purchase from you.

In addition to the content of qualifying information, its source also matters. Factual data obtained from corporate insiders or financial experts are more likely to be considered material than educated conjecture due to an analyst’s access to valuable inside information that could affect their client’s investments.

Another way material nonpublic information can be defined is based on its potential impact on the market. When an issuer discloses information that could cause a substantial change in stock prices, it’s considered material nonpublic data.

Examples of material nonpublic information include earnings reports and announcements regarding pending mergers or acquisitions. This type of data has the potential to significantly influence stock prices, so investors must comprehend it thoroughly.

Additionally, material nonpublic information may include outcomes of pending legal proceedings and regulatory agency decisions that pertain to a company. Such disclosures have an immense effect on the market and should be disclosed promptly to avoid negative repercussions.

Qualifying information, no matter the definition, is essential for sales teams to comprehend and incorporate into their business operations. By recognizing and selling qualified leads, companies can enhance their sales performance and realize a greater return on their investment.

One of the most crucial elements of qualifying information is understanding its relationship to NPI (National Provider Identifier). NPI is a healthcare provider identification number that can be utilized for transactions with Medicare and Medicaid programs.

Data Security Essentials: Strategies to Protect Non-public Personal Information

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