Which statement accurately describes the extension of the fiduciary duty of confidentiality after the agency ends?

• A. The fiduciary duty of confidentiality ends when the agency ends.
• B. The fiduciary duty of confidentiality extends beyond the agency relationship.
• C. Confidentiality lasts for five years.
• D. Confidentiality applies only to financial information.

Answer: (B)

Confidentiality in fiduciary relationships continues even after the agency ends. When a client shares sensitive information, the obligation is not tied to how long the agent represents them; it protects nonpublic details for as long as those details remain confidential. That means the duty can persist indefinitely for information that remains secret or constitutes a trade secret, and it applies to more than just financial data. The idea is to prevent harm to the client by revealing or misusing sensitive information learned during the relationship.

For example, if a client reveals a strategic business plan or pricing approach to an agent, those details should not be disclosed or used after the relationship ends, unless the information becomes public or the client waives the duty. The other options imply the duty ends, or it lasts only for a fixed time or only covers financial information, which isn’t accurate.