Standard III(E) cases: exceptions, channels and firm limits

In short

• The duty covers current, former and prospective clients and information received because of the advisory or similar role.
• Three exceptions only: the client's illegal activity, disclosure required by law, and the client's permission, whose scope you must respect.
• Illegal activity is an exception, not an instruction to go public: consult compliance or counsel to learn what the law requires. Some laws require reporting; others forbid disclosure even of wrongdoing.
• Share inside the firm only with colleagues who work for that client, and use only channels the firm's policy and the client accept; firm-run platforms may not suit confidential data.
• Accidental disclosure is judged by reasonable steps: warnings, firm procedures, training and prompt removal.
• Good intentions do not create an exception: helping a charity or a donor with client information is still a breach, whereas cooperating with a CFA Institute inquiry is not.