Ruling Disciplinary Committee | DSI 2001-05

DSI Disciplinary Committee ruling dated 2001.

The DSI Disciplinary Committee ruled in a case against an investment adviser. The complaint concerned receiving a private benefit from a client after a successful transaction, and a similar transaction in which a private benefit was also enjoyed. These behaviors occurred prior to DSI registration and were not reported with the registration application. The bank took measures at the time: the benefit had to be transferred to charity, a bonus discount was imposed and a warning was issued. The committee ruled that, given the timing of the conduct (before the introduction of the DSI Code of Conduct), no disciplinary action could be imposed. However, the Respondent could have reported the facts upon registration, but due to lack of clarity at DSI about reporting obligations and rehabilitation by the employer, the committee saw no reason for a measure.

Disciplinary Committee ruling

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

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.2, 7.3.5

Linkage to DSI Core Principles:

• Core principle 1: Take responsibility.
  Respondent should have taken responsibility for reporting relevant facts at registration.
• Core Principle 7: Be clear about interests
  Receiving a private benefit from client transactions can lead to conflicts of interest and requires full transparency.
• Core principle 5: Comply with rules.
  It is important to follow internal and external rules, even if they have not yet fully crystallized.