Ruling Disciplinary Committee | 2001 | Intraday trading

DSI Disciplinary Committee ruling dated 2001.

The DSI Disciplinary Committee ruled in a case against a former investment adviser. The complaint concerned performing day trading in options for the account of his mother, a client of the bank, in violation of the private investment transactions regulation applicable to him. In doing so, the defendant earned profits, which were divided between him and his mother, and at times allowed an unauthorized overdraft. The defendant acknowledged the facts, expressed regret and indicated that he was now employed elsewhere. The committee ruled that, despite the offense, the consequences had been severe enough for the defendant and that exclusion from registration or further disciplinary action was not warranted.

Disciplinary Committee ruling

The Disciplinary Committee considered the facts insufficient grounds for exclusion from DSI registration or further disciplinary action, also in view of the consequences already experienced by the defendant.

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 5: Comply with rules
  Failure to comply with the regulation of private investment transactions violates the obligation to strictly follow internal rules.
• Core principle 1: Take responsibility.
  The defendant should have taken responsibility for his actions and been transparent about private transactions for family.
• Core Principle 7: Be clear about interests
  Acting for a family member without disclosing it creates the risk of conflicts of interest and a lack of clarity about business and personal interests.