Ruling Disciplinary Committee | 2001 | Intraday trading

DSI Disciplinary Committee ruling dated 2001.

The DSI Disciplinary Committee ruled in a case against an Investment Adviser. The complaint concerned the failure to report a suspension and legal proceedings with the employer to the DSI, unauthorized increase of the credit in one’s own investment account without required approval, conducting intra-day trading in violation of internal rules, and executing transactions for family members in which a commission advantage was allegedly created. The defendant acknowledged some incidents, but indicated that they stemmed from a lack of clarity about the rules and that there was no prejudice to the employer. The committee ruled that the incidents were isolated, not serious in nature, and that the defendant had already been disproportionately affected by dismissal and lack of benefits.

Disciplinary Committee ruling

The Disciplinary Committee dismissed the complaint and imposed no disciplinary action.

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 1: Take responsibility.
  A registrant can be expected to take responsibility for reporting relevant incidents to the DSI.
• Core principle 5: Comply with rules.
  It is important to strictly adhere to internal rules and procedures, even when unclear.
• Core principle 7: Be clear about interests
  Transparency about transactions for family members prevents appearance of conflicts of interest.