Ruling Disciplinary Committee | 2004 | unauthorized transactions

DSI Disciplinary Committee ruling dated December 20, 2004.

The DSI Disciplinary Committee has ruled in a case against a senior Securities Trader who conducted transactions on behalf of and at the risk of the employer without the explicit consent of his supervisor. The employer had filed an incident report and claimed that the defendant was acting in violation of internal rules. The committee found that while the defendant had had authorization in the past, there had been a lack of clarity about revoking this authority. The transactions had not been concealed and were a one-time violation of an internal authorization rule, with no integrity violation or personal gain.

Disciplinary Committee ruling

The Disciplinary Committee deemed DSI’s complaint unfounded and dismissed it.

Articles DSI Code of Conduct applicable: 7.1.1 to 7.1.4, 7.2.1, 7.2.2

Linkage to DSI Core Principles.

• Core principle 3: Act carefully
  Diligence in complying with internal agreements is important, but occasional, non-integrity-related violations do not warrant disciplinary action.
• Core principle 1: Take responsibility.
  The professional should have proactively consulted with supervisors when authority is unclear.