Mrs. Chen, a new immigrant to Canada, is applying for a mortgage in Surrey, BC. Her mortgage agent asks for a copy of her foreign bank statements and employment records from her home country, stating it's for 'due diligence.' Which of the following best describes the agent's obligations under PIPEDA regarding this information?

Question: Mrs. Chen, a new immigrant to Canada, is applying for a mortgage in Surrey, BC. Her mortgage agent asks for a copy of her foreign bank statements and employment records from her home country, stating it's for 'due diligence.' Which of the following best describes the agent's obligations under PIPEDA regarding this information?

Answer options: ✅ The agent must secure Mrs. Chen's express consent for collecting, using, and disclosing this personal information, and only collect what is necessary.

• The agent can collect any information deemed relevant without explicit consent as it's for a financial transaction.
• PIPEDA does not apply to information collected outside of Canada, so the agent has no obligations.
• The agent must anonymize the data before sending it to any potential lenders to comply with PIPEDA.

Correct answer: The agent must secure Mrs. Chen's express consent for collecting, using, and disclosing this personal information, and only collect what is necessary.

Explanation: Under PIPEDA, organizations must obtain an individual's informed consent for the collection, use, and disclosure of their personal information, and only collect information that is necessary for the stated purpose.