Certified Financial Planner (CFP) Exam 2026 – 400 Free Practice Questions to Pass the Exam

The option stating that disclosure may be made to any party on the consent of the client is correct because client confidentiality is fundamental in financial planning and advisory roles. Clients have the right to dictate what happens with their personal data, including to whom it can be disclosed. When a client provides explicit consent, the financial planner can share information with designated individuals or organizations without violating confidentiality.

This aligns with the ethical standards that govern the profession, emphasizing the importance of respecting client autonomy and ensuring their privacy preferences are honored. In a situation where a client agrees to share their data, it allows for necessary collaboration or communication, as long as the consent is informed and voluntary.

Understanding the significance of client consent not only helps maintain trust but also underscores the professional responsibility to protect sensitive information while recognizing the client's rights over their data.