What must a licensee do if it discloses nonpublic personal financial information to a nonaffiliated third party for marketing?

When a licensee discloses nonpublic personal financial information to a nonaffiliated third party for marketing purposes, it is essential that they list the categories of information disclosed and describe the nature of that third party. This requirement ensures transparency and gives consumers an understanding of how their private information is being utilized. By providing this information, the licensee allows consumers to be informed about who has access to their data, which is a key principle in protecting consumer privacy.

Requiring the disclosure of this information is rooted in regulations that aim to uphold the integrity of consumer data and ensure that individuals are aware of how their personal information is being utilized and with whom it is being shared. This practice fosters accountability for the licensee and helps to maintain trust between consumers and the businesses that handle their sensitive information.