How should 'non-public information' be handled?

• A. It should be disclosed to all clients
• B. It should be safeguarded and not disclosed to inappropriate parties
• C. It should be published in quarterly reports
• D. It should be ignored

Answer: (B)

Non-public information should be safeguarded and not disclosed to inappropriate parties. In practice, this means keeping confidential client data, trading plans, and firm-sensitive details secure and limiting access to those who have a legitimate business need to know. Firms implement policies and controls (like secure communications and restricted access) to prevent leaks and to comply with privacy and fiduciary obligations. Disclosing such information to all clients, publishing it in public reports, or ignoring it would violate confidentiality, create regulatory risk, and undermine trust.