What action must a licensee take prior to disclosing consumer financial information?

The requirement for a licensee to obtain explicit written consent from the consumer prior to disclosing consumer financial information is rooted in the principles of privacy and confidentiality as outlined in regulations governing financial transactions and consumer protection. This process ensures that consumers are aware of and agree to the sharing of their sensitive financial data, thereby safeguarding their rights and enhancing trust in the financial system.

Obtaining explicit written consent establishes a clear and informed agreement between the consumer and the licensee, which is necessary for compliance with various regulatory frameworks, including those that pertain to data protection laws. This practice not only helps to mitigate legal risks for the licensee but also empowers consumers by giving them control over their personal financial information.

In contrast, the other choices would not adequately protect consumer rights or comply with privacy regulations. Setting a specific time frame for disclosure does not address the need for consent, while notifying the consumer only after disclosure undermines transparency and trust. Verifying the consumer's intent to disclose does not replace the necessity of obtaining written consent, which is a fundamental requirement before any financial information is shared.