What can you learn from this DSI-2013-04 ruling by the DSI Disciplinary Committee?

A DSI-certified investment adviser put a client in contact with a party that was not licensed to provide investment services. The client liquidated his investment portfolio at the bank and transferred a sum of €620,000 to this institution. For this introduction, the advisor received a fee.

The advisor remained involved throughout the management. He maintained contact with the client, provided information about the investments, and funneled money through his own bank account. When it became clear that the management was going badly and large losses were occurring, he did not intervene. In the end, the client recovered only €250,000 of his original deposit.

The Disciplinary Committee found that the advisor had allowed other interests to take precedence over his client’s interests. He had insufficient insight into the investments and the risks, did not act carefully and abused the trust the client placed in him. The measure was expulsion.

Always put your client’s interests above your own or third-party interests.

What does this mean to you?

Focus on customer interests means that you always act in your customer’s best interest, even if it is uncomfortable or has financial consequences. Do you see conflicting interests or notice that an investment is not going well? Enter the conversation, intervene and be transparent. By really putting the client’s interests first, you build trust and show what professionalism means.