Ruling Disciplinary Committee | 2001 | Taking portfolio statements

DSI Disciplinary Committee ruling dated 2001.

The DSI Disciplinary Committee ruled in a case against a Senior Investment Adviser. The complaint concerned taking portfolio data of former clients after leaving Bank X and approaching these clients to become clients of the new employer. In addition, it became known to the new employer that the defendant had been managing an investment club for friends and family for years, in violation of the Private Transactions Regulation. Although taking clients is more common in the industry and was not contractually prohibited, the committee found the taking of client information reprehensible and the failure to report private transactions to the employer in violation of the code of conduct.

Disciplinary Committee ruling

The Disciplinary Committee deemed the complaint founded and imposed the measure of a reprimand on the defendant. The measure is not published in conjunction with the defendant’s name.

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.4, 7.3.1 and 7.3.5

Linkage to DSI Core Principles:

• Core principle 6: Ensure confidentiality.
  Taking client portfolio data with you after leaving employment violates the duty of careful handling of confidential information.
• Core principle 5: Comply with rules
  Failure to comply with the regulation on private transactions and to report relevant ancillary activities to the employer violates the obligation to strictly observe rules.
• Core principle 1: Take responsibility.
  The defendant should have taken responsibility for his actions and been transparent about his activities outside the employer.