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CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities

Meera, a Company Secretary, is engaged to advise an insurer on a corporate agency arrangement. Midway, she learns that the insurer's competitor, also her client, has confidential plans on the same product. What should she do under professional ethics?

Meera must keep both clients' information confidential and handle the conflict of interest properly, through safeguards, disclosure of the conflict where permissible, or declining an engagement. She cannot use or reveal one client's confidential plans for another, nor ignore the conflict.

  1. AUse the competitor's plans to improve her advice to the insurer
  2. BDisclose the competitor's plans to the insurer to be transparent
  3. CMaintain confidentiality of both clients' information and manage or disclose the conflict of interest appropriatelyCorrect
  4. DQuietly continue with both without any step, since both are paying clients

Explanation

A professional must preserve client confidentiality and must not use one client's confidential information for another. A conflict of interest must be identified and managed, for example by safeguards or declining one engagement. Disclosing or using the competitor's plans breaches confidentiality, and ignoring the conflict is unethical.

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