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IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies

An actuary, Arjun, is asked in a court proceeding by a lawyer to reveal the valuation assumptions he prepared for a former client. The client has not consented to disclosure. The court has issued a valid order requiring production of the documents. What is the correct position?

Arjun may disclose only the information that the valid court order requires, informing the client where permitted, and nothing beyond that. Confidentiality is not absolute and gives way to a legal compulsion, but disclosure must be limited to the legal requirement.

  1. AHe must refuse because confidentiality is absolute under all circumstances
  2. BHe may disclose only what the lawful order requires, after informing the client where permitted, and no moreCorrect
  3. CHe may disclose everything he knows about the client's business to be safe
  4. DHe should hand the documents to the lawyer informally without checking the order
  5. He should destroy the documents to avoid the dilemma

Explanation

Confidentiality yields to a legal obligation, but disclosure should be limited to what is legally required. Informing the client where allowed is good practice. Destroying documents or over-disclosing would be improper.

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