Educational measure imposed by DSI for suspected market manipulation Posted on April 16, 2025 at 1:01 pm.Written by Roeland Jongejan On 14 January 2025, DSI imposed an educational measure on a DSI certified investment specialist. The decision followed a transaction involving a suspected case of market manipulation. According to DSI, the professional’s actions were not in line with the DSI Code of Conduct. What happened? DSI’s investigation revealed that the certified professional received a client order to purchase shares, with a comment suggesting an anticipated price increase. The order was passed on to another institution responsible for execution. However, a staff member at that institution informed the professional that the order was refused based on advice from their compliance department, due to concerns over potential market manipulation. Despite this refusal, the certified professional went on to execute the order independently using the trading system of their own employer. Why does this breach the Code of Conduct? DSI considers that the combination of the client’s specific request and the compliance warning from the executing institution should have prompted the professional to act with greater caution. Instead of proceeding directly, they should have consulted their own compliance officer before taking further steps. By executing the order without doing so, the professional acted carelessly. Which rules were breached? According to DSI, the following articles of the Code of Conduct were violated: Article 7.1.2 and 7.1.3 – DSI Core Principle 3: Act carefully Article 7.1.5 and 7.1.6 – DSI Core Principle 5: Comply with rules What measure was taken? When a breach of the Code of Conduct is identified, DSI can impose sanctions. This may involve submitting the case to the DSI Ethics Committee or offering a settlement. In this case, DSI opted for a settlement involving a mandatory training programme. In determining this educational measure, DSI also took into account the employment-related consequences the professional had already faced as a result of the incident.
New at DSI: 10 core principles for professional integrity Posted on April 9, 2025 at 3:46 pm.Written by Roeland Jongejan DSI introduces 10 core principles for integrity in action to stimulate dialogue on integrity in the financial sector. The core principles represent the essence of our Code of Conduct. They provide financial professionals with guidance in making the right choices, thus strengthening trust in the sector. Every DSI-certified professional commits to these principles. What do the core principles mean? The ten core principles are a practical translation of the DSI Code of Conduct, making it applicable in daily practice. Together, they form a moral compass in situations where laws and regulations do not provide clear answers. This includes ethical dilemmas, gray areas, or rapid changes in the sector. The principles encourage professionals to think consciously about their actions and to make integrity a constant topic of conversation within teams and management. They provide clear guidelines and directly align with the standards that DSI applies in disciplinary law. Here are the ten core principles: Take responsibility – For your own behavior and that of your surroundings. Focus on the client’s interests – Always act in the best interest of your client. Act with care – Show respect and expertise in your work. Show leadership – Promote adherence to the Code of Conduct by others. Follow the rules – Comply with the rules that apply to your profession. Ensure confidentiality – Protect confidential information. Be clear about interests – Prevent conflicts of interest. Communicate openly – Be transparent and avoid misunderstandings. Demonstrate expertise – Provide careful and professional advice to your client. Act honestly – Be ethical and strengthen trust in the market. These principles are directly linked to the DSI Code of Conduct. A more detailed explanation of the core principles can be found on our website or via this link. Integrity dilemma? Discuss it or report it to DSI. Ethical dilemmas should ideally be discussed early within your organization. However, if a situation goes beyond an internal conversation and potentially involves a violation of the Code of Conduct, you can make a report to DSI. The report will be carefully assessed. If the situation falls under disciplinary law, an investigation will be initiated. The DSI Ethics Committee will hear all involved parties and determine whether a violation has occurred. If so, a sanction may be imposed. The core principles as a starting point for dialogue The introduction of these core principles is an invitation to the sector to engage in dialogue about integrity – within teams, with leaders, and with the sector as a whole. By demonstrating leadership, making dilemmas discussable, and acting according to clear principles, we work together towards a transparent and ethical financial sector. The core principles provide direction, but their application requires deeper reflection. DSI will offer this deeper insight by continuing to engage with the sector on current risks and integrity dilemmas, with a focus on topics such as digitalization and sustainable finance. We will keep you updated on these developments through various media in the coming period.