A colleague discusses a M&A deal with another colleague in the same dept but not working for the same client just to seek his advice / opinion. is this a violation of preservation of client confidentiality? i believe YES, its a violation bcoz CFA cirriculum states avoid discussing client related matters even with colleagues unless they are working for the same client. but sample answer states its not a breach as intention was to improve client service. what do people here think? BREACH or NO BREACH.
No breach. See CFAI LIII texbook. Volume 1. P68. The simplest, most conservative, and most effective way to comply with Standard III(E) is to avoid disclosing any information received from a client “except to authorized fellow employees who are also working for the client”.
Seems to me it should be a breach based on “except to authorized fellow employees who are also working for the client”. If he is not working for the client, you can’t discuss.
that my point too … same as “newsuper”
To avoid disclosing any information received from a client except to authorized fellow employees who are also working for the client. However, a member or candidate may want to disclose information received from clients that is outside the scope of the confidential relationship and does not involve illegal activities. Before making such a disclosure, a member or candidate should ask the following: - In what context was the information disclosed? If disclosed in a discussion of work being performed for the client, is the information relevant to the work? - Is the information background material that, if disclosed, will enable the member or candidate to “improve service to the client” (Quoted from textbook)