Under the Code of Ethics, what must an advisor do when they receive nonpublic information?

The requirement for an advisor to maintain the confidentiality of nonpublic information stems from the fundamental ethical obligation to protect client privacy and uphold trust in the advisor-client relationship. Nonpublic information, often sensitive in nature, must be handled with care to prevent potential harm to clients or the markets. Advisors are bound by the Code of Ethics to ensure that they do not misuse this information or disclose it without proper authorization. Maintaining confidentiality aligns with the standard of professionalism expected in the financial advisory field, reinforcing the integrity of the financial services industry as a whole. This commitment to confidentiality promotes trust and encourages clients to share pertinent information openly, knowing it will be safeguarded.