Which CFA Institute standard is implicated when a member knowingly uses client information to benefit a personal investment opportunity without the client's consent?

• A. Standard VI.C Referral Fees.
• B. Standard III.A Loyalty, Prudence, and Diligence.
• C. Standard IV.E Preservation of Confidentiality.
• D. Standard VII.A Conduct as a CFA Institute Member or Candidate.

Answer: (C)

Preservation of client confidentiality is the standard at issue here. When a member uses information obtained from a client to pursue a personal investment opportunity without the client’s consent, they violate the obligation to keep client information confidential. This fiduciary duty sits at the heart of the relationship—clients must be able to trust that their information won’t be exploited for personal gain unless they explicitly consent or a legal exception applies. The standard requires safeguarding all information obtained in the course of providing investment services and restricting its use to protect the client’s interests. While loyalty, prudence, and diligence, or conduct, relate to other aspects of professional behavior, they do not directly address the misuse of confidential information for personal benefit in the way preservation of confidentiality does.