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ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour

A member leaves a firm and joins a competitor. A former client, now a customer of the new firm, asks him to use details of a rival client's tax affairs learned in his old job. No legal duty to disclose exists. What is the correct position under the Code's confidentiality principle?

He must not use or disclose the information. The confidentiality principle continues after leaving a firm or ending a client relationship. Information may only be disclosed with proper authority or where there is a legal or professional right or duty, and neither applies, so using it would breach the Code.

  1. AHe may use the information because he no longer works for the old firm
  2. BHe must not use or disclose the information, as the duty continues after the relationship endsCorrect
  3. CHe may use it if he does not name the rival client

Explanation

The confidentiality duty continues after the end of the employment or client relationship. Information must not be disclosed or used for personal advantage or that of a third party without proper authority or a legal or professional right or duty. Removing the name does not remove the breach if the information is used.

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