A CFA Member or Candidate may be justified in disclosing confidential information received from a client

By Investopedia Staff AAA
Q:
A CFA Member or Candidate may be justified in disclosing confidential information received from a client, but not be in violation of Standard III-E, Preservation of Confidentiality. In making such a disclosure, all of the following situations would be justified except:
A) This information was only disclosed following written authorization by the client.
B) This information is being requested by prosecuting attorneys in a court case involving the client.
C) This information is outside the scope of the confidential relationship.
D) This information is being forwarded to a business associate seeking sales leads.
A:

The correct answer is: D)
While acknowledging the importance of preserving confidentiality (and sensitivity of financial information disclosed), the Standards of Practice Handbook discusses a number of exceptions to its rule - such as if the client authorizes a disclosure, or if such disclosure is legally required, or if the information is not material. On the other hand, Standard III-E is intended to prevent situations such as business associates sharing sales leads.


RELATED FAQS

  1. Which of the following statements is (are) true with respect to the calculation of ...

    The correct answer is: a) (I) is incorrect because results that cover a period of less than a year must "not" be annualized. ...
  2. Which of the following terms are associated with the purchase/redemption of open-end ...

    The correct answer is b. Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares ...
  3. Joanne Bume, CFA, is the head of research at large brokerage firm ...

    The correct answer is: a) The proper course of action would simply be to place Universal Airlines on a restricted list until ...
  4. A registered representative has been following PDQ stock in the market over the past ...

    The correct answer is c. Current yield compares the current price of acquiring the stock to the income from the stock, the ...
RELATED TERMS
  1. No results found.

You May Also Like

Related Articles
  1. No results found.
Trading Center