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E. Preservation of Confidentiality.
#analyst-notes #code-of-ethics-and-standards-of-professional-conduct #iii-duties-to-clients
Example 1

You work in the trust department of a large bank. A client tells you that she must sell a significant portion of her personal stock portfolio in order to generate cash to meet the payroll of her small business. Shortly after the meeting, a colleague in the commercial lending department of the bank mentions seeing you with the client. She has applied for a large business loan. He asks you if you have any information that could help the bank with the loan decision. You cannot disclose the content of your meeting with the client. If the colleague wants additional information, he should contact your client directly.

Example 2

The employer of a client asks to meet with you. The employer suspects your client of embezzling funds from his place of work. You are aware that the client has made several substantial additions into his discretionary account during the past two months. It may be appropriate to provide information if it pertains to illegal activities. However, you are expected to preserve client confidentiality unless there is a clear indication of these activities. Contact your supervisor or legal counsel before providing information about your client.

Example 3

A financial advisor learns that a client plans to make a charity donation. He tells a charity to solicit donation from the client. The financial advisor violates the standard for revealing confidential client information.

Example 4

An analyst claims that he cannot disclose client trading information to CFA Institute's PCP committee. He therefore violates the standard for not providing confidential client information to the PCP.

Example 5

A member receives a request from a government department to review a client's records on account of some suspicion. The member may have to disclose the information to the government department.
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