A mortgage broker in Ontario facilitates a mortgage for a client for debt consolidation. During the process, the client shares sensitive personal financial information, including credit scores and spending habits. What is the broker's responsibility regarding this information under PIPEDA?

Question: A mortgage broker in Ontario facilitates a mortgage for a client for debt consolidation. During the process, the client shares sensitive personal financial information, including credit scores and spending habits. What is the broker's responsibility regarding this information under PIPEDA?

Answer options: ✅ To collect, use, and disclose the personal information only for the purpose for which it was collected, with the client's consent, and to protect it with appropriate safeguards.

• To share the client's credit score with other potential lenders without explicit consent to find better rates.
• To retain all client information indefinitely, even after the mortgage transaction is complete.
• To use the client's spending habits data for marketing other financial products without direct consent.

Correct answer: To collect, use, and disclose the personal information only for the purpose for which it was collected, with the client's consent, and to protect it with appropriate safeguards.

Explanation: The Personal Information Protection and Electronic Documents Act (PIPEDA) dictates that personal information must be handled with consent for specified purposes, and reasonable safeguards must be in place to protect it.