HCDI Certified Independent Reviewer
Chapter 6. Inside information and the reviewer
Source note
Source basis - S4, physical PDF page 9.
general professional knowledge. This chapter gives no legal advice. A reviewer reads material about companies, some of them listed or preparing to list, before their reports issue. Information that is not public and could affect a company's securities may carry legal restrictions on use and disclosure. The restrictions differ between jurisdictions, and this chapter does not state them. The professional position is simple. Treat everything in an assignment as confidential, use it only for the review, and take advice from counsel on your own legal obligations. If you are unsure whether something is restricted, treat it as if it were.
Red Flag. A friend or relative asking about a company you are reviewing.
Sensitive information can be misused indirectly
Basis - general professional knowledge and editorial explanation. External references are identified explicitly; this section adds no HCDI rule.
A person can disclose information through hints, trading suggestions or casual conversation without sending a document. Confidential review material must be used for the authorised purpose. This chapter states general professional restraint, not jurisdiction-specific legal duties or an insider-trading opinion.
Figure 4.6 Sensitive information can be misused indirectly. Original conceptual illustration; arrows organise the discussion and do not establish a validated causal effect or a scoring procedure.
Original exercise L4 E06
Basis - original fictional exercise. The organisation, events and any numbers are invented for learning. No HCDI result is assigned.
A relative asks whether a reviewed company's forthcoming transaction is likely to proceed and offers to trade on the answer.
| Analytical task | Learner response required |
| Observation | Identify what the stated record directly establishes. |
| Inference | State the interpretation that still needs support. |
| Alternative | Identify a plausible alternative or missing context. |
| Authority | Identify the relevant credential or role boundary. |
Question - What should the reviewer do?
Worked answer: Part G, exercise L4 E06.