Ruling Disciplinary Committee | DSI 2008-01

Provision of anomalous price information

DSI Disciplinary Committee ruling dated February 7, 2008.

The DSI Disciplinary Committee ruled in a case against a senior Securities Trader and director of a securities institution. The complaint concerned the structural and deliberate provision of incorrect information to a client about the value of his portfolio and cooperating in a sham construction, which allowed certain transactions to take place in violation of the client’s internal policy. The Respondent acknowledged that he provided anomalous valuations and set up a scheme to circumvent internal rules. The committee charged the Respondent severely for having seriously disregarded his exemplary role as a manager and ignored the professional standards set forth in the Code of Conduct.

Disciplinary Committee ruling

The Disciplinary Committee found that this conduct constituted a serious violation of the standards of competence and integrity contained in the Code of Conduct. In determining the sanction, the committee took into account the defendant’s personal circumstances, including the loss of his position and the potential impact on his current work. The commission imposed a four-month suspension, plus eight months of conditional suspension with probation, and a fine of €1,250.

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.2, 7.1.3, 7.1.4, 7.1.5, 7.2.2

Linkage to DSI Core Principles:

• Core principle 1: Take responsibility. – As a director, the Respondent had an exemplary role and should have taken responsibility for acting with integrity and preventing wrongdoing.
• Core principle 3: Act carefully – Knowingly providing false information and setting up schemes to circumvent rules violates due diligence and integrity.
• Core principle 4: Show leadership – As a manager, Respondent had a crucial role in enforcing the Code of Conduct and setting the right example for employees.
• Core principle 5: Comply with rules – Setting up a sham scheme to circumvent internal rules undermines confidence in the industry and is contrary to compliance with applicable rules.