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ACCA Strategic Professional · Strategic Business Leader · Professionalism, ethical codes and the public interest

Daniel, a Chartered Certified Accountant, is finance director of Brightwave Ltd. At a dinner, a friend who works for a rival asks about Brightwave's unannounced plan to acquire a supplier. Daniel is tempted to hint at it because the friend has promised not to tell anyone. Which statement best reflects the Code's position on confidentiality?

Daniel must not disclose the plan. The confidentiality principle bars disclosing information gained through professional relationships without proper and specific authority, or a legal or professional right or duty to disclose. A friend's promise of secrecy provides no such authority.

  1. ADaniel may disclose it because the friend has given an assurance of secrecy
  2. BDaniel must not disclose it, as confidential information acquired through professional relationships must not be disclosed without proper and specific authority or a legal or professional right or dutyCorrect
  3. CDaniel may disclose it provided the acquisition has not yet been formally agreed
  4. DDaniel may disclose it because the friend is also a professional and bound by ethics

Explanation

Confidentiality requires that information obtained through professional and business relationships is not disclosed to third parties without proper and specific authority, or unless there is a legal or professional right or duty to disclose. A promise of secrecy from the friend does not give authority. The fact that the deal is not agreed makes the information more sensitive, not less.

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