Jessica A.

Paquera BSA-II

Quiz no. 4 Prelim June 27,2019

Why confidentiality is important

In today’s increasingly litigious and highly competitive workplace, confidentiality is
important for a host of reasons .Failure to properly secure and protect confidential business
information can lead to the loss of business/clients.

In the wrong hands, confidential information can be misused to commit illegal activity
(e.g., fraud or discrimination), which can in turn result in costly lawsuits for the employer. Many
states have laws protecting the confidentiality of certain information in the workplace. The
disclosure of sensitive employee and management information can lead to a loss of employee
trust, confidence and loyalty. This will almost always result in a loss of productivity.

Confidential workplace information can generally be broken down into three categories:
employee information, management information, and business information. Employee
Information: Many states have laws which govern the confidentiality and disposal of “personal
identifying information” (e.g., an employee’s Social Security number, home address or telephone
number, e-mail address, Internet identification name or password, parent’s surname prior to
marriage or driver’s license number). The Americans with Disabilities Act of 1990 (ADA)
requires employee medical and disability information be kept confidential and limits access to
those employees who have a “business need-to-know” (e.g., supervisors who need to know about
restrictions on the work of an employee or other reasonable accommodations that need to be
made, safety personnel handling medical emergencies, government officers investigating
complaints of disability discrimination). The Health Insurance Portability and Accountability Act
of 1996 (HIPAA) regulates healthcare providers’ use and disclosure of individually identifiable
health information (known as Protected Health Information).

Confidential management information includes discussions about employee relations

issues, disciplinary actions, impending layoffs/reductions-in-force, terminations, workplace
investigations of employee misconduct, etc. While disclosure of this information isn’t
necessarily “illegal,” it is almost always counterproductive and can seriously damage the
collective “psyche” of a workplace.

Business Information:

We oftentimes refer to confidential business information as “proprietary information” or

“trade secrets.” This refers to information that’s not generally known to the public and would not
ordinarily be available to competitors except via illegal or improper means. Common examples
of “trade secrets” include manufacturing processes and methods, business plans, financial data,
budgets and forecasts, computer programs and data compilation, client/customer lists, ingredient
formulas and recipes, membership or employee lists, supplier lists, etc. “Trade secrets” does not
include information that a company voluntarily gives to potential customers, posts on its website,
or otherwise freely provides to others outside of the company.

Train management and employees on confidentiality policy: Oftentimes, simply having a

written confidentiality policy is not enough. In order for the confidentiality policy to be effective,
managers, supervisors and employees must be educated on confidentiality issues and the
company’s policies and procedures. Management and employees should be allowed an
opportunity to ask questions about the policies, and everyone should be trained to avoid putting
sensitive information in e-mails. Many companies and organizations include this training as part
of the new-hire/orientation process.

Management should also be instructed as to the proper way of communicating with the
company’s inside and outside counsel so as to ensure that certain work-related documents and e-
mails are protected by the attorney-client privilege.

This is one of the most important steps a business/organization can take to protect its
confidential information, and unfortunately, it’s oftentimes the one step that is ignored. All the
policies, procedures and training in the world will not matter if those policies and procedures are
not enforced. In order for a confidentiality policy to have “teeth,” employees who violate the
policy must be disciplined in accordance with an employer’s corrective action procedures.

Consider Having New and/or Current Employees Sign a “Non-Disclosure” Agreement:

These agreements go by many names. Sometimes they are called “non-disclosure

agreements,” and other times they are called “proprietary information agreements.” Regardless
of title, these agreements are contracts designed to protect the confidential “business
information” described above (e.g., “trade secrets”). These agreements are vital to most
businesses today, especially considering the ease in which employees can now electronically
transfer large amounts of information, much of which would be incredibly damaging in the
hands of a competitor.

When it comes to confidentiality, prevention and deterrence is key. The first question we
ask our clients when they contact us in response to a potential confidentiality breach is “do you
have a confidentiality policy and/or non-disclosure agreement?” The stronger your policies and
agreements, the better you are prepared to take quick and effective action to protect your
business/organization. Of course, we are always available to counsel employers in the area of
confidentiality and to develop policies and agreements that provide businesses with the proper
safeguards.

Retrieved from:https://www.halpernadvisors.com/why-is-confidentiality-important/
 5 ways regulation that protects investors
1. Meeting the standards
Dealers, advisers and investment fund managers must demonstrate fitness for registration
at the time they apply for registration, and they must continue to do so throughout the
period that they are registered.

For a firm, fitness for registration is assessed in terms of the firm’s ability to carry out its
obligations under securities legislation, including the maintenance of: adequate working
capital and insurance, books and records bust compliance systems procedures for dealing
with clients, such as at account opening and in ongoing reporting.

Fitness for registration is assessed through proficiency, integrity and solvency criteria.
For individual representatives, registration means that they have met the minimum
standards for education and experience required for their category of registration.

2. Setting the bar

Together with the self-regulatory organizations (SROs), securities regulators administer,

develop, update and enforce the rules for all firms and individuals that operate in
Canada’s markets, including public companies, investment Funds, intermediaries,
dealers, advisers and investment fund managers.

3. Checking in

Securities regulators, the Investment Industry Regulatory Organization of Canada

(IIROC) and the Mutual Fund Dealers Association of Canada (MFDA) regularly monitor
firms, public companies and dealers, investment fund managers or advisers to make sure
they’re meeting standards and following the rules. IIROC sets out the Universal Market
Integrity Rules (UMIR) which governs all trading practices in Canada.

4. Fair markets

Securities regulators and IIROC oversee all securities marketplaces in Canada, including
the Toronto Stock Exchange (TSX) and TSX Venture Exchange. They watch markets
closely and monitor compliance with securities law and rules. Public companies must
disclose information on a timely basis and in accordance with securities laws.

5. Taking action

If an individual or firm breaks rules of conduct, regulators take action, such as imposing
appropriate sanctions or other disciplinary measures to prevent future harm. This could
include placing terms and conditions on an individual or firm’s registration or suspending
or revoking registration if the firm or individual becomes unfit for registration.

CLEAN SWEEP

Regular compliance reviews are one way the OSC checks whether firms are following
securities regulations. Some reviews are targeted inspections, or sweeps, where the
regulator focuses on one particular issue or theme, across a sample of registered firms.
The OSC recently performed a sweep of 87 portfolio managers and exempt market
dealers to assess their compliance with know-your-client, know-your-product and
suitability obligations to check whether firms are investing appropriately for their clients.
As part of this sweep, the OSC called clients of portfolio managers and exempt market
dealers to ask questions about their experiences with the firm. The OSC issued its
findings and is also planning to publish best practices and guidance to firms on these
issues.

Retrieved from: https://www.getsmarteraboutmoney.ca/protect-your-money/investor-

protection/regulation-in-canada/5-ways-regulation-protects-investors/