Answer: only by sharing the contact details of the former client with the charity.

## Explanation **Correct Answer: B** - only by sharing the contact details of the former client with the charity. ### Analysis of the Scenario: 1. **Sharing former client contact details**: - Otkins shared contact details of a former client with a charity for fundraising purposes. - This violates Standard III(E): Preservation of Confidentiality, which requires members to keep information about current, former, and prospective clients confidential unless: - The information concerns illegal activities - Disclosure is required by law - The client or prospective client permits disclosure - Sharing client information for fundraising purposes without consent is a clear violation. 2. **Reporting money laundering to regulator**: - Otkins learned that an existing client was involved in illegal money laundering. - Standard III(E) permits disclosure of confidential information when it concerns illegal activities. - Even though there are no applicable laws relating to client confidentiality, the Standard allows disclosure when the information concerns illegal activities. - Therefore, reporting the client to the regulator for money laundering is **not** a violation of confidentiality standards. ### Key Points: - **Confidentiality Standard (III(E))**: Protects all client information (current, former, prospective) - **Permitted Disclosures**: - When information concerns illegal activities - When disclosure is required by law - When client gives permission - **Violation**: Sharing former client information for charity fundraising without consent - **No Violation**: Reporting illegal money laundering activities to regulator ### CFA Institute Standards Reference:** - Standard III(E): Preservation of Confidentiality - Members must maintain the confidentiality of information related to their work - Exceptions include: illegal activities, legal requirements, client permission

Author: LeetQuiz .