Appeals Committee ruling | DSI-2017

Serious violation of standards of professionalism and competence

DSI Appeals Committee ruling dated June 29, 2017 (appeal DSI 2016-04)

On June 29, 2017, the DSI Appeals Committee issued its decision on appeal against the DSI Disciplinary Committee’s decision of February 13, 2017. The case concerned a former Investment Analyst who received price-sensitive information from a company and discussed this information in the dealing room and distributed it via Bloomberg to approximately 50 people, before the company itself had issued a press release.

Appeals Board ruling

The Appeals Committee found that the appellant acted improperly by opening the email containing price-sensitive information and not immediately informing compliance, but instead entering the dealing room and discussing the receipt of the email. This demonstrated a lack of competence and professionalism in handling confidential and price-sensitive information. The Appeals Committee did not find the use and distribution of the annual figures prior to publication to be disciplinary culpable, as the appellant was entitled to assume that there were no longer any restrictions on the figures, given the communication with the company and the lack of instructions from compliance.

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.2 and 7.1.4

The Appeals Committee partly upheld the complaint and imposed a fine of €500. DSI was ordered to reimburse the costs incurred by the appellant in the amount of €500.

Linkage to DSI Core Principles.

• Core principle 6: Ensure confidentiality:
  The defendant should have handled price-sensitive information carefully and not disseminated it before it was officially made public.
• Core principle 9: Show expertise:
  Disseminating unpublished figures to third parties does not demonstrate professionalism and expertise and damages trust in the industry.