Confidentiality
Background
Confidential (non-public) information falls into 3 categories:
- Proprietary information – this may have competitive or commercial value.
- Inside information – concerning finances, operations and strategy.
- Sensitive information – in respect of post or future proceedings or deliberations.
Unauthorised disclosure of confidential information may:
- Impact or imperil a fund’s competitive advantage or commercial success.
- Lead to illegal insider trading/manipulation of stock/units pricing.
Policy/fund documentation
- Confidentiality policies applicable to the fund should clearly set out/explain obligations owed by managers and investors in respect of provision, receipt and communication of confidential information.
- There is a tension between a need to maintain confidentiality, and a need for transparency. Managers are encouraged to be as transparent as reasonably practicable, and where necessary to supply information via confidentiality agreement.
A - Minimum compliance
- Managers are required to disclose their policy in relation to the management and dissemination of confidential information.