Accounting firms · Last updated October 20, 2026

GLBA, the Safeguards Rule and accounting firm data licensing

Short answer: The FTC applies GLBA's privacy and Safeguards rules to many non-bank financial businesses, including tax preparers. Before licensing records, a firm should confirm its information security program covers the transfer and that customer information is excluded or handled as the rules require.

What GLBA requires

See the FTC's overview of the Act (FTC GLBA) and the Safeguards Rule guidance, which lists tax preparers among covered businesses (FTC Safeguards Rule).

Questions for your security lead

How will copies be extracted and transferred?
Who has access to raw data before de-identification?
How and when will the buyer delete the raw upload?

This is general information, not legal advice. Talk to your own attorney or compliance advisor before you share or license any records.

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Frequently asked questions

Does GLBA ban data licensing?

It sets privacy and security obligations; whether a specific deal fits them is a question for counsel.

What does Mode say about security?

Its FAQ describes encrypted transfer and storage, limited access, and deletion of the raw upload within 120 days.

Sources

Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.