NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Ethical Issues
Which of the following is an example of a breach of client confidentiality by an investment adviser?
Discussing a named client's holdings and finances with a friend at a social gathering breaches confidentiality. Client information can be disclosed only with the client's consent or where law requires, such as to a regulator, and casual sharing meets neither condition.
- ASharing client data with a regulator when legally required
- BDiscussing a named client's holdings and finances with a friend at a social gatheringCorrect
- CStoring client records securely as per policy
- DDisclosing information with the client's written consent to a tax consultant chosen by the client
Explanation
Confidential client information may be disclosed only with consent or when required by law. Casual discussion of a named client's finances with a friend has neither basis and is a breach. The other options are permitted or good practice.
Did you get it right without looking?
One question tells you little. A timed set on Ethical Issues shows your real accuracy, how long you take and where you lose marks.
More Ethical Issues questions
- Which of the following is an example of the adviser's duty of fair and complete disclosure to a client?
- Which practice by an investment adviser is consistent with the ethical requirement of fair and honest communication with clients?
- Which of the following is the best example of an adviser maintaining objectivity when preparing a client's financial plan?
- An investment adviser registered under the SEBI (Investment Advisers) Regulations, 2013 learns that a client's spouse, who is not the client…
- Which of the following is an example of an adviser breaching the ethical duty of confidentiality towards a client?
- Mr. Raman Iyer, an investment adviser, recommends a mutual fund scheme to a client and does not mention that the fund house pays his related…