What must a licensee do before disclosing nonpublic personal financial information?

Before disclosing nonpublic personal financial information, a licensee is required to provide a clear and conspicuous revised notice and a new opt-out notice to the consumer. This requirement is in place to ensure that consumers are fully informed about how their personal financial information will be used and shared. The notice serves to protect consumers' privacy rights by giving them the necessary information to make an informed decision about whether they want their information shared. It also provides an opportunity for consumers to opt out of having their information disclosed, which is a critical component of consumer consent in financial transactions.

Other options such as notifying the consumer verbally, sending a follow-up email, or waiting for the consumer to request the information do not fulfill the legal obligation outlined in regulations concerning privacy and financial information. These actions may lack the necessary formalities and clear communication that is essential in handling sensitive information, placing consumers at risk of having their data disclosed without proper consent or knowledge. Thus, providing a revised notice and opt-out notice is the established protocol to safeguard consumer rights effectively.