When a legal request or court order requires disclosure of confidential client information, what is the CFP's obligation?

• A. Disclose all client data immediately.
• B. Refuse to disclose under any circumstances.
• C. Comply with the legal requirement while protecting confidentiality and limit disclosure to what is required.
• D. Disclose only with the client signing a waiver.

Answer: (C)

When a legal request or court order requires confidential client information, the CFP’s obligation is to follow the law while protecting confidentiality as much as possible. Provide only the information the order requires and limit it to what is necessary to meet that requirement. If feasible, seek protective steps to narrow the scope and minimize disclosure, and consult with legal counsel to interpret the order and preserve confidentiality. Inform the client when appropriate and feasible. A client waiver isn’t a prerequisite for complying with a legal demand, and disclosing more than what the order specifies or doing so before the order is fulfilled would breach confidentiality.