The simplified notice is part of a 365-page interagency report summarizing the first phase of a research effort launched in September 2004 to develop alternatives to today's lengthy, dense and complex notices.

The report, by Washington-based Kleimann Communication Group, was commissioned by the Federal Trade Commission, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., the National Credit Union Administration, the Office of the Comptroller of Currency and the Securities and Exchange Commission. All of the agencies are responsible for enforcing the provisions of the Gramm-Leach Bliley Act of 1999.

The six agencies, together with the Office of Thrift Supervision, will fund a second phase of the project where the effectiveness of the prototype will be tested against a larger consumer base. 'The agencies have deferred consideration of policy action with respect to financial privacy notices until the next phase of consumer testing is completed,' the regulators said in a statement Friday.

Loretta Garrison, an attorney with the FTC's bureau of consumer protection, said the prototype was developed using consumer research gathered by Kleimann.

'What we've released is the result of the first phase of our research work,' Garrison said. 'Essentially, what it was about was exploring in depth how consumers read notices and process complex information to develop a notice that was simpler and easier ... to understand and use.'