Teresa Staal, CFA, is an investment officer in a bank trust department. She manages money for celebrities and public figures, including an influential local politician. She receives a request from the politician's political party headquarters to disclose his stock holdings. The request indicates that local law requires the disclosure. What steps should Staal most likely take to ensure she does not violate any CFA Institute Standards of Professional Conduct?

• A. Provide the information and inform her client.
• B. Send the requested documents and inform her supervisor.
• C. Check with her firm's compliance department to determine her legal responsibilities.
• D. Ignore the request.

Answer: (C)

When a third party requests a client’s holdings and law may require disclosure, the right move is to involve your firm’s compliance function to determine what you may disclose and how to do it correctly. Checking with compliance ensures you interpret the local law, follow internal policies, and apply CFA Institute standards while protecting client confidentiality. The compliance team can confirm whether disclosure is mandated, what information can be released, and whether client consent or additional approvals are needed, coordinating with legal if necessary. This approach safeguards the client’s privacy, satisfies regulatory and firm requirements, and maintains professional integrity. Disclosing information without this review, forwarding documents without proper authorization, or ignoring the request would risk violating confidentiality, policy, and legal obligations.