Scenario: A client’s confidential information is shared with a third party without consent for marketing purposes. Which CFA Institute Standard is violated?

• A. Standard IV.D Performance Presentation
• B. Standard IV.E Preservation of Confidentiality
• C. Standard VI.A Disclosure of Conflicts
• D. Standard IV.C Suitability

Answer: (B)

The key idea here is safeguarding client information. When a client’s confidential information is shared with a third party for marketing without the client’s consent, the obligation to protect that information is violated. Members and candidates must not disclose confidential information obtained about a client except with proper written consent or when disclosure is required by law or regulation. This scenario breaks that rule, because there is no consent and no legal obligation driving the disclosure.

This isn’t about how performance is presented, conflicts of interest, or whether a recommendation is suitable—the other standards govern those areas, not the handling of confidential data. The breach here is a failure to preserve confidentiality.