Q:
Under the Uniform Securities Act, client information may not be disclosed to a third party unless such disclosure is authorized by the client. Which of the following disclosures would be prohibited under this provision?
a) The client’s accountant with a signed power of attorney requests tax basis of a security
(b) The IRS requests the details of a stock sale in the account from last year
(c) The client’s attorney requests the current account balance to help with the client’s estate planning
(d) The client’s wife requests the account balance of a joint account
A:
The correct answer is c.
No authorization is needed from the client’s wife since it is a joint account. Also none is needed for the IRS, since there is an exception for government agencies. And, the power of attorney would constitute authorization from the client. But written authorization would be required to disclose the information to the attorney.
   

RELATED FAQS

  1. A CFA Member or Candidate may be justified in disclosing confidential information ...

    The correct answer is: D) While acknowledging the importance of preserving confidentiality (and sensitivity of financial ...
  2. An advisor has all client advisory fees automatically deducted from their accounts ...

    The correct answer is c) An advisor is not deemed to have custody of client funds when debiting management fees from the ...
  3. Your firm is a registered investment advisor that specializes in investment management ...

    The correct answer is b: As a professional, you must be able to recognize when clients make requests for services that are ...
  4. All of the following are unethical behaviors prohibited under the Uniform Securities ...

    The correct answer is b. All registrants must follow the client’s instructions, including executing a trade that the registrant ...
  5. Under the Uniform Securities Act, a registrant who holds custody of client funds ...

    The correct answer is d). A registrant is required to segregate client funds, send notice whenever funds have been moved ...
  6. Which of the following signatures are required on a client’s new account form ... ...

    The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ...
RELATED TERMS
  1. Full Trading Authorization

    A level of trading authorization that grants an agent or broker the ...
  2. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
  3. Account Executive

    This term refers a person who has primary responsibility for ...
  4. Limited Trading Authorization

    A level of trading authorization that gives an agent or broker the ...
  5. Client Base

    A company's primary source of business. A client base consists ...
  6. Special Power Of Attorney

    A special power of attorney grants an agent the authority to ...
Hot Definitions
  1. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  3. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  4. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  5. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  6. Nonfarm Payroll

    A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number ...
Trading Center