Does this sentence mean that Kostecka (who is a CFA) acted on the information?
If so, apart from violating Standard IA Knowledge of Law, IVA Loyalty to Employers; did he also violate Standard ID Misconduct, IIIE Preservation of Confidentiality, and VIIA Conduct as a Participant in the CFA Institute Program?
I don’t think there is a violation of preservation of confidentiality here
The client has earned money through illegal activity. Isn’t it the members reponsibilty to first report the compliance department of the firm, then report to the authorities and if asked by the CFA Institute, disclose it to them as well? I don’t know if its mandatory to voluntary report illegal activities to the institute