Breach of confidentiality

LYNN is an investment officer at a boutique fund management outfit in downtown Raffles Place. She has an advisory customer who has talked to her about giving approximately $300,000 to charity in the midst of the ongoing pandemic. Lynn is also treasurer of a not-for-profit organisation, which is planning its annual giving campaign. The organisation hopes to expand its list of prospects, particularly those capable of substantial gifts as the Covid-19 outbreak has reduced contributions from those who lost their income.

Lynn recommends that the not-for-profit organisation's vice-president for corporate gifts call on her client and ask for a donation in the $300,000 range.

In this particular scenario, even though the attempt to help the charitable organisation was well intended, Lynn breached the CFA Institute Preservation of Confidentiality Standard by revealing confidential information about her client. What does the standard entail and why is this important?