I have a new client that requires me to sign an NDA. IS this normal practice? I have never been asked to sign one before. He has asked me to confirm details for the NDA and without sounding daft and asking him what he needs, does anyone else have any idea?
You need to be careful as you have a legal duty to disclose to the proper authority any wrong doing be that related MLR or otherwise.
Banks and financial institutions require these (plus various financial and security checks) but they are on a different level to your normal client.
The fact that the client is asking you to sign this means that you need them to sign something similar overriding their bit of paper that states that where there is a legal or constructive requirement to divulge information to the proper authorities such takes precedence over their bit of paper.
It does anyway but making a song and dance about it should make them realise that if they are attempting to hide something from the authorities then their document is not going to protect them from your professional duty.
That the client expects you to sign this may show a lack of understanding on their part of the duty of confidentiality that exists between a financial professional and their client as detailed in the IFAC code of practice for financial professionals (section 140, confidentiality).
Assuming that your professional body is signed up to the code mention of that alone may be sufficient to allieviate the clients fears.
Provided that the client realises (and puts in writing that they realise) that legal compliance overrides such agreement and the document will not protect them if they are doing anything amiss then there is no reason not to sign as its a useless document that would never need to be used as if it were needed you would have already gone against your professional bodies and IFAC rules of professional behaviour.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have received the NDA and it stated that the contractor (me) may disclose any of the confidential informatiomn to such of her employees, agents, representatives and advisors that have a reasonable need to know for the permitted purpose provided that............ to the extent required by law or by the requested and requirement of a court of law, a regulatory body, or an administrative tribunal.
Would I still need to ask him to sign something even though this paragraph is in the nda?
