 |
Glossary - Council Interpretations 207 to 210
For the purposes of these interpretations of Rules 207 to 210 inclusive,
(a) Above the Wall
"Above the wall" is a term used to describe one or more partners or other senior members of a firm who have access to information about engagements undertaken by the firm and can therefore see both sides of a conflict. These individuals need to be particularly careful to avoid any improper use or dissemination of confidential client information to parties on either side of the wall. Partners or other members of the firm who are "above the wall" will be precluded from participating in those engagements about which they have information received in their positions above the wall.
(b) Fire Wall
A "Fire Wall" (sometimes referred to as a "Chinese Wall" or "Ethics Wall") is a conflict management technique maintained in a firm to restrict the flow of confidential information within the firm only to those who require it in order to fulfill the terms of an engagement. A Fire Wall is intended to ensure that confidential information is not improperly communicated, inadvertently or otherwise, to others within the firm.
(c) Cone of Silence
A "Cone of Silence" is an arrangement achieved by means of an undertaking by an affected person not to disclose confidential information relating to a specific client or engagement. In some circumstances, a Cone of Silence is achieved implicitly by special conduct of the person. In such circumstances, there should be observable evidence that the Cone of Silence is effective. Cones of Silence may be used to demonstrate foresight of the need to maintain the confidentiality of client information and thereby assist a firm to manage conflicts arising in various areas of its practice.
(d) Confidential Client Information
"Confidential client information" refers to information concerning the business and affairs of a client, acquired in the course of a professional relationship with the client. Such information is confidential to the client regardless of the nature or source of the information or the fact that others may share the knowledge. Such information remains confidential until the client expressly or impliedly authorizes it to be divulged.
In the case of an employee-employer relationship, the member or student has legal obligations to the employer that include a duty of confidentiality. The rule imposes a duty of confidentiality as a professional obligation, which is in addition to the member's or student's legal obligation to the employer.
(e) Conflict of Interest
A "conflict of interest" arises from an interest, restriction or relationship that, in respect of an engagement, would be seen by a reasonable observer to influence a member's judgment or objectivity in the conduct of the engagement.
(f) Institutional Mechanisms
"Institutional mechanisms" are reasonable measures that are formally undertaken by a firm to manage conflicts and to restrict the flow of confidential client information from one person in a firm to another. Such measures may include internal training, internal barriers such as Fire Walls, Cones of Silence, restricted access to files, physical separation of personnel or departments and formal firm policies and procedures.
(g) Informed Consent
"Informed consent" refers to a client's agreement, usually to proceed with an engagement, having been provided with sufficient information concerning the existence of a conflict, its nature and its potential consequences, to make a knowledgeable decision.
(h) Need to Know Basis
The "need to know basis" refers to a policy of restricting the flow of confidential client information inside a firm to those members who require the information to pursue the client's interest.
(i) Rebuttable Presumption
A "rebuttable presumption" is a presumption that will be deemed to be valid or true until adequate evidence to the contrary is produced. A presumption is rebutted when the actual facts are found to be different than the presumption assumes.
|
Home
