Which statement is false about confidentiality and ethics?

Which statement is false about confidentiality and ethics?

• A. The Principle of Fairness requires impartiality, intellectual honesty, and disclosure of conflict(s) of interest.
• B. A CFP certificant must safeguard the confidentiality of client information.
• C. The CFP certificant may never release client information to a third party.
• D. Confidentiality is a key ingredient in creating a relationship of trust and reliance between a client and a CFP certificant

Answer: (C)

Confidentiality is essential for a trusted client–certificant relationship, but it isn’t absolute. A CFP certificant must safeguard client information, yet there are legitimate, permissible reasons to share it with third parties. With the client’s explicit consent, the certificant may disclose necessary details to professionals who help deliver the financial plan (such as an attorney, CPA, or other advisors) or to staff who are directly involved in serving the client. Disclosures may also be required by law, regulation, or court orders, and information may be shared to protect the client or to facilitate proper engagement and defense in a dispute. The duty to maintain confidentiality typically continues even after the engagement ends. This aligns with the other statements: fairness involves impartiality, intellectual honesty, and disclosure of conflicts of interest; safeguarding confidentiality is a fundamental requirement; and confidentiality helps build trust and reliance between client and certificant. Therefore, the assertion that a CFP certificant may never release client information to a third party is not correct.

Confidentiality is essential for a trusted client–certificant relationship, but it isn’t absolute. A CFP certificant must safeguard client information, yet there are legitimate, permissible reasons to share it with third parties. With the client’s explicit consent, the certificant may disclose necessary details to professionals who help deliver the financial plan (such as an attorney, CPA, or other advisors) or to staff who are directly involved in serving the client. Disclosures may also be required by law, regulation, or court orders, and information may be shared to protect the client or to facilitate proper engagement and defense in a dispute. The duty to maintain confidentiality typically continues even after the engagement ends.

This aligns with the other statements: fairness involves impartiality, intellectual honesty, and disclosure of conflicts of interest; safeguarding confidentiality is a fundamental requirement; and confidentiality helps build trust and reliance between client and certificant. Therefore, the assertion that a CFP certificant may never release client information to a third party is not correct.