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

An FRM holder is a risk consultant for Client A. During the work she learns confidential details of Client A's trading positions. Client B, a competitor and another of her clients, would benefit from this information. Which action is consistent with the GARP Code of Conduct?

She must keep Client A's information confidential unless the law requires disclosure or Client A authorizes it. Removing the name, charging a fee, or owing a duty to another client does not allow her to pass on confidential information.

  1. AShare the information with Client B in general terms, without naming Client A
  2. BShare it with Client B only if Client B pays an additional fee
  3. CKeep Client A's information confidential unless disclosure is required by law or authorized by Client ACorrect
  4. DShare it with Client B because both clients are her clients and she owes both a duty

Explanation

The Code requires members to keep information confidential unless disclosure is legally required or the client permits it. Anonymizing it still discloses confidential information derived from the engagement. A fee or equal duty to both clients does not create permission.

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