Which factor should a bank consider before sharing information about a customer with its broker- dealer affiliate in the case of an investigation?

Question

Options

• AWhether the broker-dealer affiliate can rely on the due diligence done by the bank
• BWhether there is a mutual legal assistance treaty in place between the two institutions
• CWhether privacy and data protection rules permit the bank to share the information with the
• DWhether both institutions have an account or are in the process of opening an account for the

• A
  6% (2)
• B
  14% (5)
• C
  77% (27)
• D
  3% (1)

Explanation

One of the challenges of information sharing within a financial group is the compliance with privacy and data protection rules that may vary across jurisdictions. Therefore, before sharing information about a customer with an affiliate, a bank should consider whether such sharing is permitted by the applicable laws and regulations, and whether the customer has consented to it. The other options are not relevant factors for information sharing in the case of an investigation.

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