Under what circumstances may a licensee disclose nonpublic personal financial information?

Disclosing nonpublic personal financial information is governed by regulations that prioritize consumer privacy. The correct choice highlights that such disclosure is permissible under specific conditions as outlined in the initial notice provided to the consumer. This notice typically details the circumstances under which information may be shared, thereby ensuring transparency and allowing consumers to understand their rights regarding their personal data.

This approach reflects compliance with legal standards, such as the Gramm-Leach-Bliley Act, which mandates that financial institutions must inform consumers about their privacy policies and the conditions under which they may disclose personal information. By adhering to these specified terms, licensees maintain the necessary balance between operational needs and consumer confidentiality.

The other options suggest conditions for disclosure that do not align as strictly with privacy regulations. Explicit consent from the consumer is important, but the correct answer encompasses a broader understanding of compliance based on the guidelines provided in the notice. Promotional offers do not inherently warrant disclosure of personal information, and verbal agreements lack the formal structure and accountability provided by documented notices. Understanding these principles ensures that licensees handle consumer information responsibly.