A professional asks a client to waive confidentiality to gain a business advantage.

A professional asks a client to waive confidentiality to gain a business advantage.

• A. Standard IV.E Preservation of Confidentiality
• B. Standard III.C Responsibilities of Supervisors
• C. Code of Ethics and Standards
• D. Standard VII.A Conduct as a CFA Institute Member or Candidate

Answer: (A)

Preserving confidentiality is fundamental in client relationships: information entrusted by a client must be kept confidential unless the client provides consent to reveal it or disclosure is required by law. Asking a client to waive that confidentiality to gain a business advantage directly undermines that obligation and risks harming the client and eroding trust. The standard specifically requires that confidential information obtained through professional activities be kept confidential, with only the allowed exceptions being client consent or legal obligation. The other standards cover related duties like supervising others or general ethical conduct, but they don’t address the central obligation to protect client information in this way. So preserving confidentiality is the best fit because the issue at hand is a violation of that explicit requirement.

Preserving confidentiality is fundamental in client relationships: information entrusted by a client must be kept confidential unless the client provides consent to reveal it or disclosure is required by law. Asking a client to waive that confidentiality to gain a business advantage directly undermines that obligation and risks harming the client and eroding trust. The standard specifically requires that confidential information obtained through professional activities be kept confidential, with only the allowed exceptions being client consent or legal obligation. The other standards cover related duties like supervising others or general ethical conduct, but they don’t address the central obligation to protect client information in this way. So preserving confidentiality is the best fit because the issue at hand is a violation of that explicit requirement.