Explanation:
According to the GARP Code of Conduct, a member must not make use of confidential information for inappropriate purposes and must keep client information confidential. Although the client's information might impact the bank's business loans, Bosh received this information in confidence in his capacity as the client's personal portfolio manager. Disclosing it internally to another department without the client's explicit authorization or without a legal mandate constitutes a violation of the duty of confidentiality.
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Q.42 Jared Bosh, FRM, serves as a portfolio manager at Cali Bank. Among his clients is Gustavo Hernandez, a talented chef and restaurant owner, for whom Bosh manages a personal portfolio of stocks and government bonds. Hernandez recently disclosed to Bosh that he is under investigation for being an illegal immigrant and might get deported in the coming months. Later that day, Bosh shares that information with his colleague at Cali Bank responsible for handling the business loans of Hernandez. Jared Bosh has most likely:
A
Not violated the GARP Code of Conduct because she revealed illegal activities on the part of her client
B
Not violated the GARP Code of Conduct with respect to confidentiality because it is central to the bank’s activities to know that a customer with outstanding loans might get deported
C
Violated the GARP Code of Conduct by failing to detect the immigration status of his client
D
Violated the GARP Code of Conduct with respect to confidentiality
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