DSI Core principle 10
Honesty strengthens trust and keeps the market reliable. Honesty is crucial to keeping markets transparent and well-functioning. Misconduct, such as market manipulation or insider trading, undermines public trust. It is your responsibility to always act ethically and contribute to a reliable financial sector.
At DSI, ten core principles are central to our Code of Conduct. They provide financial professionals with guidance to act with integrity every day and strengthen trust in the sector. Every DSI-certified individual commits to these principles, helping us contribute to a transparent and ethical financial sector. Discover all 10 core principles of DSI here.
Learn about real-life integrity dilemmas linked to this core principle
Discover articles 7.3.1, 7.3.3 and 7.3.4 from the DSI Code of Conduct that are related to this core principle.
What if you, as a professional, notice an integrity issue?
On 16 June 2009, the DSI Ethics Committee delivered its ruling in a case involving a DSI-certified commercial director of an investment firm. The case centred on honesty in securities trading and the careful handling of information in the context of a media appearance.
The certified professional was a regular guest on the television programme Businessclass, which was sponsored by his employer. In these broadcasts, he made specific investment recommendations, often involving shares of companies with small market capitalisation and limited trading volumes.
An investigation revealed that he — along with other employees — had prior knowledge of the recommendations before the broadcasts aired, and that they executed transactions in the mentioned shares both on behalf of clients and for their own benefit.
The DSI Ethics Committee ruled that this conduct was in breach of the DSI Code of Conduct. The certified professional knowingly engaged in trading activities that undermined the principle of fair market behaviour. He was suspended for three years, and the decision — including his name — was made public. The Appeals Committee upheld this decision on 15 December 2009.
This case strikes at the heart of the core principle Act with integrity. As a professional in the financial sector, you have not only a legal duty, but also a moral obligation to act transparently and honestly.
If you are in possession of information that could reasonably be expected to influence market prices, you must handle it with the utmost care. Acting with integrity means ensuring that neither you nor your organisation gains an unfair advantage over others in the market.
By acting with integrity, you help build a trustworthy financial sector where everyone has a fair chance to succeed.
“Integrity is not optional — it is the foundation of trust.”
View the full ruling
Ethical dilemmas are ideally discussed early within your own organization, so you can come to a careful and justifiable decision together. Prevention is better than cure, and integrity should be a constant topic of discussion within teams and the management of organizations in the financial sector.
However, when a situation goes beyond an internal dilemma and potentially involves an integrity violation, financial professionals can report it to DSI. This is based on the DSI Code of Conduct and may lead to disciplinary proceedings. Discover everything about making an integrity report, the DSI Code of Conduct and DSI Ethics Enforcement via the buttons below.