Standard III(E) Preservation of Confidentiality

what is Standard III(E) Preservation of Confidentiality

Members and Candidates must keep information about current, former, and prospective clients confidential unless:

• The information concerns illegal activities on the part of the client;

• Disclosure is required by law; or

• The client or prospective client permits disclosure of the information.

When Does Confidentiality Apply?

1. Information is obtained through a professional/client relationship.

2. The information relates to the client's business or personal affairs.

which clients must you keep confidentiality of?

Confidentiality Continues After Relationship Ends

Members must protect information belonging to:

• Current clients

• Former clients

• Prospective clients

Disclosure is permitted if the client gives explicit authorization.

what is the guidance aroudn compliance with law?

Follow applicable laws regarding confidentiality.

• If Law Requires Disclosure: Must disclose.

• If Law Requires Confidentiality: Must maintain confidentiality, even if the information concerns potentially illegal client activity.

When uncertain:

• Consult compliance department.

• Seek legal counsel before disclosing information.

what are yout responsibilities around electronic info?

• Follow firm security policies.

• Understand data protection requirements.

• Prevent accidental disclosures.

what are the firms responsibilities around electronic info?

• Train employees regularly.

• Establish information security procedures.

• Ensure all staff understand confidentiality obligations.

how is confidentiality treated in CFA Institute Professional Conduct Program (PCP)

Providing client information to a CFA Institute PCP investigation is not a violation of Standard III(E).

Members Should

• Cooperate with investigations.

• Provide requested information when legally permitted.

The PCP is treated as an extension of the member/candidate for disciplinary investigations.

recommended procedures for members

• Members should avoid disclosing information received from a client except to authorized coworkers who are also working for the client.

• Members should follow firm procedures for storage of electronic data and recommend adoption of such procedures if they are not in place.