Explanation:
Bradley's actions did not violate the Standard relating to preservation of confidentiality because:
Legal consultation: He consulted his firm's legal counsel before taking action, which demonstrates proper due diligence.
Illegal activities: The Standard III(E) - Preservation of Confidentiality allows disclosure of confidential information when it involves illegal activities. Both tax evasion and money laundering are illegal activities.
Relevant information only: He only disclosed confidential information that was relevant to the illegal activities being reported.
No local laws: The country has no applicable laws on information confidentiality, so there are no local legal restrictions preventing such disclosures.
Professional duty: CFA professionals have a duty to report illegal activities, especially when they involve financial crimes that could harm the integrity of financial markets.
Key takeaway: When illegal activities are discovered, CFA professionals may disclose confidential client information to appropriate authorities after proper consultation, especially when reporting financial crimes.
Ultimate access to all questions.
A
No
B
Yes, by reporting Client 1 to the tax authorities
C
Yes, by reporting Client 2 to the financial regulator
No comments yet.