Preservation of Confidentiality in CFA® Level 1: CFA® Level 1 | Test Prep

Standard IV (B.5), Preservation of Confidentiality

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Question

Standard IV (B.5), Preservation of Confidentiality states:

Answers

A. all of these answers.

B. none of these answers.

C. members must release information to AIMR when the Professional Conduct Program is holding an investigation, unless there is a settlement agreement between the parties that stipulates confidentiality.

D. if the information is confidential, even illegal activity may not be reported, because there is the issue of trust between parties.

E. members should avoid disclosing any information received from a client except to authorized fellow employees who are also working for the client.

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Explanations

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A. B. C. D. E.

Under Standard IV (B.5), members shall preserve the confidentiality of information communicated by clients within the scope of client-member or employer- member relationship, except when the member receives information concerning illegal activity on the part of the client. When there is an investigation under PCP, members shall provide information about a client in support of the investigation. Settlement agreements with confidentiality clauses do not prohibit members from cooperating with a PCP investigation.

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