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


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.
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