NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Ethical Issues
Which practice by an investment adviser best reflects the ethical principle of confidentiality towards clients?
Keeping client information private and disclosing it only with the client's consent or when legally required best reflects confidentiality. Sharing portfolio details with friends, using data to market associates' products, or revealing client names and holdings without consent all breach the adviser's duty.
- ASharing a client's portfolio details with a friend for a second opinion
- BUsing a client's financial data to market unrelated products of an associate without consent
- CPosting anonymised success stories with the client's name and holdings visible
- DKeeping client information private and disclosing it only with consent or when required by lawCorrect
Explanation
Confidentiality means client information is not disclosed to third parties without consent, except where law or a regulator requires it. The other options share or use personal data without consent, which breaches that duty.
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