Ruling Disciplinary Committee | DSI 2005-03

DSI Disciplinary Committee ruling dated February 2, 2005.

The DSI Disciplinary Committee ruled in a case against an investment adviser who was accused of having applied a different commission calculation to one client without the employer’s permission and of possibly carrying out unauthorized asset management. The committee found that there was an incidental violation of the internal authority matrix, but that there was no convincing evidence that actual asset management was performed without an agreement or that the client did not instruct prior to transactions. The violation involved only one client and was not structural in nature. The committee emphasized that it is not for the Disciplinary Committee to adjudicate internal rules without integrity protections unless there is a systematic violation.

Disciplinary Committee ruling

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

Articles DSI Code of Conduct applicable: 7.1.1 to 7.1.5, 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 consultant has taken responsibility by explaining his actions and not pursuing personal gain.