Question of the Week

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

Answer:

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.
   
Financial Professionals
  1. the general ledger is the record of a company's entire financial transaction history.
    Investing

    What's a General Ledger?

  2. Several things factor into the salary of a financial advisor. Here's a look.
    Investing Basics

    How Much Does A Financial Advisor Earn?

  3. These 5 strategies offer financial advisors a blueprint on how to grow their practices.
    Professionals

    Growth Strategies For Financial Advisors

  4. If you're considering investing in China and want to know when to buy, sell, hold or stay away, consider these economic indicators.
    Economics

    Eyeing China? Consider These Economic Indicators

  5. Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
    Investing Basics

    8 Essential Tips For Retirement Saving