Beth Anderson, FRM, is a portfolio manager for several wealthy clients including Reuben Carlyle. Anderson manages Carlyle's personal portfolio of stock and bond investments. Carlyle recently told Anderson that he is under investigation by the IRS for tax evasion related to his business, Carlyle Concrete (CC). After learning about the investigation, Anderson proceeds to inform a friend at a local investment bank so that they may withdraw their proposal to take CC public. Which of the following is most likely correct? Anderson:
A. violated the Code by failing to immediately terminate the client relationship with Carlyle.
B. violated the Code by failing to maintain the confidentiality of her client's information.
C. violated the Code by failing to detect and report the tax evasion to the proper authorities.
D. did not violate the Code since the information she conveyed pertained to illegal activities on the part of her client.
I wonder why choice A and choice C are not correct.