Chapter 4: Communication with Customers and Prospects - C. Client Confidentiality

Question 1

Client Confidentiality

Answer 1

Client account information must be kept confidential and may not be released to any party unless required to do so by a legal decree or court order, or if the client consents to such release to a specified party.

Examples of client private information include but are not limited to: investments, investment strategies, social security numbers, and residential addresses and phone numbers if unlisted. However, disclosure of client information that may be requested by government authorities such as the SEC, IRS, or FINRA, is permitted since the disclosure is required by law. The sharing of client information with affiliated entities such as the clearing firm of the broker/dealer is also permitted.