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

Which of the following disclosures of confidential client information would be most likely permitted under the ACCA Code of Ethics and Conduct?

Disclosure required by law, such as reporting suspected money laundering, is permitted. Confidentiality can be overridden where there is a legal or professional duty or right to disclose. Passing information to friends, competitors, or using it for personal gain is a breach of the principle.

  1. ATelling a friend at another firm about a client's forthcoming acquisition so they can advise on it
  2. BProviding information to a competitor of the client who offers a fee for the data
  3. CUsing the information to buy shares for the accountant's own benefit
  4. DDisclosure required by law, such as reporting suspected money laundering to the relevant authorityCorrect

Explanation

Confidentiality may be set aside where disclosure is permitted by law and authorised by the client, or where there is a legal or professional duty or right to disclose. Legal reporting duties, such as for money laundering, fall in this category. The other options are for personal gain or unauthorised third parties, which breach confidentiality.

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