I read this question on a Schweser mock : PQR’s client tells him he is planning to sell his house. PQR tells his realtor friend about this and also discloses his business relationship with the client. The correct answer was that disclosing business relationship with the client was a violation of the Standard on preservation of confidentiality, while telling his realtor friend about the house was not. I remember reading a question in the Schweser reading on Ethics where an analyst discloses his client’s intent to donate to a charity to a friend who is the trustee of the charity, and the answer was that it was not a violation. So, disclosing business relationship with client = violation. Not so clear about disclosing other personal details. Thoughts?
Can you provide me other options too.
Disclosing information he has learnt from the client in the course of their business relationship has violated the Standards.
If he just disclose about the house… that is not violation…
If PQR has not received permission from client, (Roberts) he has violated the standard on preservation of confidentiality : A. Both by disclosing Roberts’ plan to sell his home and that he is a client. B. By disclosing Roberts’ plan to sell his home but not by mentioning that he was a client C. By disclosing that Roberts is a client but not by mentioning Roberts’ plan to sell his home. I chose A, correct answer is C.
I will go for C as well. Disclosing aboutnselling his house is part of fiduciary duty to the client, but disclosing the business relationship violates confidentiality
Is disclosing information about the client selling his home really a fiduciary duty?