What is the main purpose of the initial privacy notice requirement?

The main purpose of the initial privacy notice requirement is to ensure transparency regarding information sharing practices. This requirement is designed to inform consumers about how their personal information is collected, used, and disclosed by financial institutions or service providers. By clearly outlining these practices, the notice helps consumers understand what information is being shared, with whom, and for what purposes. This transparency is crucial in fostering trust and providing consumers with the knowledge necessary to make informed decisions about their personal data.

The other options do not capture the essence of the initial privacy notice requirement. Informing consumers about investment risks relates to financial products but does not address privacy practices. Outlining a licensee's financial products focuses on the offerings rather than how consumer data will be handled. Restricting access to financial records is a broader confidentiality concern and not the specific goal of the initial privacy notice.