Ruling Disciplinary Committee | DSI 2007-01

Failure to timely inform former employer of departure of key client

DSI Disciplinary Committee ruling dated June 30, 2007.

The DSI Disciplinary Committee ruled in a case against an asset manager, where the complaint concerned his failure to inform his former employer in a timely manner of the intended departure of a major client. The asset manager was aware at an early stage of the client’s intention to transfer the portfolio elsewhere and, together with a colleague, made an introductory visit to the new asset manager. The committee found that the client decided to leave independently and that the initiative did not lie with the asset manager. Although the committee judged that the asset manager’s conduct was not worthy of praise, it was not of such an order as to call into question his integrity according to the DSI Code of Conduct.

Disciplinary Committee ruling

The Disciplinary Committee ruled that there were no grounds to uphold DSI’s complaint and dismissed the complaint.

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.
  The asset manager had a responsibility to act with integrity and inform his former employer of relevant developments in a timely manner.
• Core principle 7: Be clear about interests
  Failure to share crucial information about the departure of a key client can lead to conflicts of interest and damage trust between employer and employee.
• Core principle 3: Act carefully
  Carefulness in communication and avoiding misunderstandings is essential for trust in the industry.