Ruling Disciplinary Committee | DSI 2012-01

Expulsion for mixture of private and business interests

Ruling Disciplinary Committee DSI TCD 2012 no. 1 dated June 21, 2012

On June 21, 2012, the DSI Disciplinary Committee ruled on a case against a former Senior Asset Manager and statutory director/shareholder of a financial institution. The complaint concerned structural violations of the Code of Conduct, including mixing private interests with the business interests of investors and carrying out transactions contrary to the investment policy. Supervisors were also improperly informed.

Disciplinary Committee ruling

The Disciplinary Committee found that the Respondent’s conduct was very serious, especially given his leadership position. There had been structural violations of professional standards, where the interests of investors were not paramount. The committee deemed expulsion from registration appropriate, despite the fact that the defendant was no longer active in the industry.

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.2, 7.1.3, 7.1.4, 7.1.5, 7.2.1 and 7.2.5

Linkage to DSI Core Principles:

• Core principle 2: Focus on customer interests.
  Investors’ interests should always have been the focus; acting contrary to investment policy and failing to separate private and business interests damages trust.
• Core principle 7: Be clear about interests
  Failure to be transparent about (potential) conflicts of interest and failure to prevent them violates the core values of integrity and openness.