标题: ethics question from sample exam [打印本页] 作者: AnalystAlan 时间: 2013-4-12 21:49 标题: ethics question from sample exam
Don Rowan, CFA, works for an investment bank that is advising a client about a potential acquisition of Martin Industries. Although Rowan is not working on the Martin deal, Julia Carney, CFA, a colleague in the same department who is directly involved with the acquisition, telephones Rowan at home to ask for his advice about the acquisition.
When disclosing the Martin Industries deal to Rowan, did Carney violate any CFA Institute Standards of Professional Conduct?
A. No.
B. Yes, relating only to client confidentiality.
C. Yes, relating to both client confidentiality and fiduciary duty to employer.
Correct Answer is A. According to Standard III (E), Duties to Clients: Preservation of Confidentiality, members may disclose information received from clients to fellow employees in an effort to improve client service. The Standard relating to Duties to Employers does not include a fiduciary duty.
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But, what I learned from Curriculum is “The simplest and most effective way to comply with standard (III) E is to avoid disclosing any information received from a client except to authorize fellow employees WHO ARE ALSO WORKING FOR THE CLIENT. ” Obviously, Rowan is not working on the Martin deal. I think Carney should not disclose the information on Martin. Anybody can explain? Thank you.
