What must a licensee do if it changes its policies regarding the disclosure of nonpublic personal information?

When a licensee changes its policies regarding the disclosure of nonpublic personal information, it is required to provide a revised privacy notice that reflects these changes. This is essential to ensure that customers are well-informed about how their personal information is being handled, which is a fundamental aspect of maintaining trust and transparency in the relationship between the licensee and its clients.

A revised privacy notice serves to update existing customers and inform potential customers about new practices or policy changes. This notice typically outlines what information is collected, who it is shared with, and the options available to customers regarding their information. By providing a revised privacy notice, the licensee is adhering to legal and ethical standards that govern the protection of personal data, contributing to consumer rights and privacy awareness.

In contrast, simply informing customers verbally, publishing a general announcement, or taking no action at all would not suffice to meet the regulatory requirements for privacy disclosures. Verbal communications can easily be misinterpreted or forgotten, making them an unreliable method for conveying such important information. A general announcement does not provide the specific details needed for each individual’s understanding of their privacy rights. Therefore, a revised privacy notice is the most appropriate and compliant response to policy changes regarding nonpublic personal information.