Under what condition is confidential information held by the NMLS not subject to disclosure?

Confidential information held by the Nationwide Multistate Licensing System (NMLS) is protected under specific circumstances defined by privacy laws and regulations. The correct condition for this information to be exempt from disclosure is when the individual or entity involved waives the privilege. This means that confidentiality is maintained unless the person chooses to allow it to be disclosed.

In situations where there is no waiver of confidentiality, the information remains protected and cannot be shared, even if there is pressure to do so through legal processes or requests by regulatory bodies. This emphasizes the importance of personal control over one's confidential information and the legal framework in place that upholds this principle.

The other conditions listed do not serve the same protective function as a waiver of privilege. For example, if state law requires disclosure or if a subpoena is issued, these would compel compliance despite the confidentiality. Similarly, a request by the Commissioner would also override the confidentiality unless a waiver was in place. Thus, the privilege to keep the information confidential holds firm as long as the individual retains their right to prevent disclosure.