Disciplinary Committee ruling | 2002 | Failure to report corporate gift

Ruling Disciplinary Committee DSI (GC 02-03) dated 2002

The DSI Disciplinary Committee ruled in a case against a Senior Investment Advisor. The complaint concerned twice accepting business gifts from a client without reporting this to the former employer, in violation of the internal rules of conduct. In addition, the Respondent twice withheld a business gift intended for a colleague. The Respondent indicated that he had forgotten to report it due to personal problems and found reporting cumbersome. The committee charged that the defendant failed to act with transparency and integrity, despite his personal circumstances.

Disciplinary Committee ruling

The Disciplinary Committee deemed the complaint founded and imposed the measure of a reprimand on the defendant. Given the already far-reaching consequences for the defendant, no fine was imposed.

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.2, 7.2.1 and 7.2.2

Linkage to DSI Core Principles:

• Core principle 1: Take responsibility.
  The defendant should have taken responsibility for its own actions and been transparent about promotional gifts received.
• Core principle 7: Be clear about interests
  Failure to report and withhold corporate gifts creates ambiguity about potential conflicts of interest and damages trust.
• Core principle 3: Act carefully
  Carefulness requires that gifts be reported and handled according to the rules, regardless of personal circumstances.