Chartered Financial Analyst (CFA) Ethics Practice Test

When a third party requests a client’s holdings and law may require disclosure, the right move is to involve your firm’s compliance function to determine what you may disclose and how to do it correctly. Checking with compliance ensures you interpret the local law, follow internal policies, and apply CFA Institute standards while protecting client confidentiality. The compliance team can confirm whether disclosure is mandated, what information can be released, and whether client consent or additional approvals are needed, coordinating with legal if necessary. This approach safeguards the client’s privacy, satisfies regulatory and firm requirements, and maintains professional integrity. Disclosing information without this review, forwarding documents without proper authorization, or ignoring the request would risk violating confidentiality, policy, and legal obligations.