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ACCA Strategic Professional · Advanced Financial Management · Corporate environmental, social, governance (ESG) and ethical issues

A CFO discovers that the company's chosen ethical response to a conflict has three steps: gather the facts, consult internally, and seek advice from the professional body. Which situation would most justify disclosure of confidential information to an external regulator without the client's consent under the Code of Ethics?

Disclosure without consent is justified where law permits or requires it, such as reporting suspected money laundering. Personal dissatisfaction, confidential takeover talks or a competing job offer do not override the duty of confidentiality under the Code of Ethics.

  1. AThe CFO dislikes the CEO's remuneration package
  2. BManagement has discussed a possible takeover privately
  3. CDisclosure is permitted or required by law, such as reporting suspected money launderingCorrect
  4. DA competitor has offered the CFO a better job

Explanation

The Code permits or requires disclosure where law requires it, such as money laundering reporting, or in the public interest in limited cases. Dislike of remuneration, confidential deal discussions and job offers do not override confidentiality.

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