Articles & Dilemmas
Take the Oath
You are here: Home/You are here: Home/Articles & Dilemmas

The ethics of confidential information

Wednesday 8 March, 2023
by Anonymous

person with hand to ear listening

You are a loan officer in a bank and a client is trying to get funding for some apartments they have been looking at building. During the process, the client has also managed to discover that the land has been rezoned for both commercial and residential use which increases its value, but also the cost.  This means the client is unable to secure the loan they need.

Although the information is confidential, you have personally been looking for an opportunity and can’t help thinking about these apartments.  

You can get funding approved, but as the loan officer, is it OK for you to purchase knowing this information?

What would you do?

Please share your ethical dilemmas with us - we can post them anonymously. You can email your dilemmas to  dilemma@bfso.org

Photo by Oleksandr Shchus on istockphoto

Comments

There are 3 comments for The ethics of confidential information.

Re: The ethics of confidential information

Wednesday 15 March, 2023
by IanS
Absolutely not. It doesn't pass the "pub" test. There would be a question as to why the client was turned down but you managed to raise the funds. The mere sniff of impropriety would taint you and your bank. Don't even go there.
Reply

Re: The ethics of confidential information

Thursday 20 April, 2023
by Sarah
As a bank there are both statutory and common law duties owed to the client. Similarly the client owes a potential credit provider a duty of disclosure on anything deemed material to the decision - credit and non credit related. This situation is no different. For the loan officer they must assess and originate any loan according to the information they possess regardless of its source, client or elsewhere. So if this information has a bearing on the value of the security or anything else then it must be assessed and offered on that basis.
Reply

Re: The ethics of confidential information

Thursday 20 April, 2023
by D
Cannot do - it’s part of being a bank mgr/ officer - opportunity is not yours for the taking, unethical to got there.
Reply

Leave a Comment

Join the conversation. Your email address will not be published.

Required fields are marked: This is a required field.

Add a Comment
Input Verification To help us avoid spam, please enter the text exactly as you see it in the image below. If your text doesn't match the image, you'll be able to try again with a different image.
Load a different image
Submit Form

The Oath

  • Trust is the foundation of my profession.
  • I will serve all interests in good faith.
  • I will compete with honour.
  • I will pursue my ends with ethical restraint.
  • I will help create a sustainable future.
  • I will help create a more just society.
  • I will speak out against wrongdoing and support others who do the same.
  • I will accept responsibility for my actions.
  • In these and all other matters;
    My word is my bond.