Under SEC Regulation S-P (Consumer Privacy), which of the following information must a firm include in its customer privacy and opt-out notices?

Get ready for the FINRA SIE Test with comprehensive multiple-choice questions and detailed explanations. Boost your knowledge and confidence for the financial industry exam!

Under SEC Regulation S-P, which focuses on protecting consumer privacy, firms are required to inform customers about their policies for safeguarding nonpublic personal information. This includes details about the measures in place to ensure the security and confidentiality of a customer's sensitive information. The rationale for this requirement is to enhance consumer awareness and trust, as understanding how a firm protects personal data is crucial for customers when considering their privacy.

While information such as customer account balances, funds availability policies, and investment performance data can be relevant to a customer's financial relationship with a firm, they do not directly pertain to the privacy policies and security measures outlined in Regulation S-P. Therefore, the inclusion of security protection policies in the privacy and opt-out notices is vital to compliance with the regulation and to reassure customers about their data protection rights.

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