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  • Exceptions to Obligation to Maintain Confidentiality

    • MIR-4.12.4

      Without prejudice to the requirements of Article 117 of the CBB Law and the CSD Module, the obligation to maintain confidentiality shall not apply to the disclosure of investor or client information by a member, or its officers, employees or representatives for the following purposes or in the following circumstances:

      (a) The disclosure of investor or client information is necessary for the making of a complaint or report under any law for an offence alleged or suspected to have been committed under such law;
      (b) The disclosure of investor or client information is permitted for such purpose specified in writing by the investor or client or, where the investor or client is deceased, by his appointed personal representative;
      (c) The disclosure of investor or client information is necessary for the execution by the member of a transaction in any securities or futures contracts or clearing or settlement of a transaction, and such disclosure is made only to another user which is:
      1. A licensed exchange and/or licensed clearing house through which the transaction is traded or cleared or settled; or
      2. A counterparty licensed member through which that transaction is executed, cleared or settled;
      (d) The disclosure of investor or client information is necessary:
      1. In any disciplinary proceedings of the SRO, or securities regulator, provided that reasonable steps are taken to ensure that client information disclosed to any third person is used strictly for the purpose for which the client information is disclosed; or
      2. For the publication, in any form or manner, of the disciplinary proceedings and the outcome thereof;
      (e) The client information disclosed is already in the public domain;
      (f) The disclosure of client information is made in connection with:
      1. The outsourcing or proposed outsourcing of any service or activity of the member to a third party;
      2. The engagement or potential engagement of a third party by the member to create, install or maintain back-up or internal control systems of the member; or
      3. The appointment or engagement of an auditor, lawyer, consultant or other professional by the member under a contract for service;
      (g) The disclosure of client information is necessary in:
      1. An application for a grant of probate or letters of administration or the resealing thereof in relation to the estate of a deceased client; or
      2. The administration of the estate of a deceased client, including such disclosure as may be required for this purpose by the relevant authority;
      (h) The disclosure of client information is made in connection with:
      1. In the case where the client is an individual, the bankruptcy of a client or
      2. In the case where the client is a body corporate, the winding up or receivership of a client; or
      (i) The disclosure of client information is made to an issuer for the purpose of the issuer's regulatory submission.
      Amended: April 2013
      Adopted January 2010

    • MIR-4.12.5

      Where client information is disclosed under paragraph MIR-4.12.4 (f), the member shall:

      (a) Maintain a record of the circumstances relating to the disclosure of client information referred to in paragraph MIR-4.12.4 (f); and the particulars of:
      1. In the case of the disclosure of information under paragraph MIR-4.12.4 (f), the outsourcing of the function of the member;
      2. In the case of the disclosure of information under paragraph MIR-4.12.4 (f), the engagement of the third party; and
      3. In the case of the disclosure of information under paragraph MIR-4.12.4 (f), the appointment or engagement of the auditor, lawyer, consultant or other professional and make that record available for inspection by the SRO and/or CBB;
      (b) Disclose the client information only insofar as this is necessary for the relevant purpose; and
      (c) Take reasonable steps to ensure that the client information disclosed is used by the entitled person to whom the disclosure is made strictly for the relevant purpose, and that the client information is not disclosed by that entitled person to any other person except with the consent of the SRO and/or CBB.
      Adopted January 2010

    • MIR-4.12.6

      Where disclosure of client information is permitted to be made for any purpose or in any circumstance under paragraph MIR-4.12.4 to a body corporate, the client information may be disclosed only to those officers of the body corporate to whom the disclosure is necessary for the relevant purpose.

      Adopted January 2010

    • MIR-4.12.7

      In paragraph MIR-4.12.6, "relevant purpose" means:

      (a) In the case of the disclosure of information under paragraph MIR-4.12.4 (f)(1), facilitating the outsourcing of the function of the member;
      (b) In the case of the disclosure of information under paragraph MIR-4.12.4 (f)(2), facilitating the engagement of the third party; and
      (c) In the case of the disclosure of information under paragraph MIR-4.12.4 (f)(3), facilitating the appointment or engagement of the auditor, lawyer, consultant or other professional.
      Adopted January 2010