Ruling Disciplinary Committee | DSI 2012-01

Share issue confidential information shared prior to press release

Ruling Disciplinary Committee DSI TCD 2012 no. 2 dated June 21, 2012

On June 21, 2012, the DSI Disciplinary Committee ruled in a case against a Securities Trader who shared confidential information about a private issue with a client prior to the official press release. The employer had already suspended and summarily dismissed the individual for violating the “inside information policy” and internal/external regulations.

Disciplinary Committee ruling

The Disciplinary Committee ruled that sharing confidential information with a client is a serious violation of the fundamental standards of the profession. Even a one-time violation of this nature is considered serious because it is a generally applicable standard. Given the consequences for the defendant (summary dismissal), the committee deemed a reprimand, not a fine, appropriate.

Articles DSI Code of Conduct of Application: 7.1.1, 7.1.2, 7.1.4, 7.3.1, 7.3.2 and 7.3.3

Linkage to DSI Core Principles.

• Core principle 6: Ensure confidentiality -. Sharing price-sensitive information before publication is a serious breach of confidentiality and undermines trust in the industry.
• Core principle 10: Act honestly – Honesty and integrity are essential; knowingly sharing confidential information is incompatible with this.