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FRM Part I · FRM Exam Part I · GARP Code of Conduct

A GARP member learns from a client's confidential materials that the client plans a restructuring not yet public. A friend asks the member for general views on the client's sector. Which response is consistent with the Code's principles on confidentiality?

The member may discuss the sector using only public information and must withhold the confidential restructuring details. The Code protects confidential client information, but it does not prohibit talking about publicly available material.

  1. AShare the restructuring details after asking the friend to keep them private
  2. BDiscuss only the sector using publicly available information and withhold the confidential detailsCorrect
  3. CShare the details if the friend does not trade in the client's securities
  4. DRefuse to discuss the sector at all, as any discussion breaches confidentiality

Explanation

Members must not disclose confidential information obtained in the course of work, except as legally required or authorized. They may still discuss public information. Option D overstates the duty, while A and C still leak the confidential information.

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