Appeals Committee ruling | DSI 2005-02

DSI Appeals Committee ruling dated September 9, 2005.

The DSI Appeals Committee ruled on a DSI complaint against an investment adviser who made 63 private transactions in options contracts over a six-week period. The employer considered this to be excessive and speculative conduct and terminated his employment. DSI claimed that this conduct violated the Code of Conduct (Articles 7.1.1 to 7.1.5) and requested a fine and reprimand. However, the Disciplinary Committee and the Appeals Committee ruled that the internal policy in force at the time was not sufficiently concrete and that it had not been convincingly demonstrated that excessive or speculative conduct had occurred. The complaint was therefore dismissed as unfounded.

Appeals Board ruling

The Appeals Committee rejected DSI’s appeal and upheld the dismissal of the complaint.

Articles DSI Code of Conduct applicable: 7.1.1 to 7.1.5

Linkage to DSI Core Principles.

• Core principle 3: Act carefully
  Care in complying with internal rules is important, but without clear standards, a disciplinary violation cannot be said to have occurred.
• Core principle 1: Take responsibility.
  The investment adviser has explained his actions and has not pursued personal gain outside the framework of the policy.