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To disclose or not to disclose are clear opposites and are not to be confused with the "more strict" rule.

Where there is conflict, local law supercede.

The "more strict" rule often refer to measures of materiality or judgement.

And finally, you need to know the applicable law before you can contemplate using the "more strict" rule, OP did not disclose that, and that is the curve ball.

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just read this in v1, must comply with local law and not disclose

great question

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Standard 3E. Schweser page 48. "Must keep information about current, former and prospective clients confidential unless: 1. The information concerns illegal activities on the part of the client or prospective client 2...."

does this not apply?

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You can not break the law!!

By disclosing you are breaking the law!

When you disclose the clients name, you can tell your prison inmate how "ethical" you are.

So ya, no disclose. Any other answer makes zero sense.

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I say you disclose because the CFA curriculum states that if "the information concerns illegal activities by the client, however, the member or candidate may have an obligation to report the activities to the appropriate authorities." So CFAI is telling us we may have to come forward with the information even without someone asking for it. The question doesn't state what the suspected illegal activity is, so we can't assume that the US has no jurisdiction. DISCLOSE!

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