Which statement about fiduciary information is true?

• A. It is confidential and cannot be disclosed without issuer consent
• B. It must always be disclosed
• C. It is never confidential
• D. It is only applicable to certain issuers

Answer: (A)

Fiduciary information is protected by the duty of confidentiality that exists whenever someone acts in a fiduciary role for another person. Information learned in that relationship, or about the client’s accounts and dealings, cannot be shared with others without proper authorization or a legal requirement. The reason this is the best answer is that the core obligation in fiduciary relationships is to safeguard the client’s interests and privacy; disclosing details to outsiders would undermine trust and could harm the client.

Disclosures are allowed only when the client gives consent or when law or regulatory processes require it. It isn’t something you disclose automatically, and it isn’t correct to say it is never confidential. It also isn’t limited only to certain issuers—the confidentiality obligation applies whenever a fiduciary relationship exists, across appropriate contexts.