Ruling Disciplinary Committee | DSI 2018-05

Fine for careless handling of confidential information – III

DSI Disciplinary Committee ruling 2018-05 dated June 19, 2019

On June 19, 2019, the DSI Disciplinary Committee ruled in a case against a former Senior Asset Manager and Fixed Income Duration Manager. The complaint concerned the careless handling of confidential information about the introduction of the Ultimate Forward Rate (UFR) by De Nederlandsche Bank (DNB), which came to the company and the defendant via the Association of Insurers.

Disciplinary Committee ruling

The Disciplinary Committee ruled that the Respondent should have realized that the information on the introduction of the UFR was strictly confidential and was not intended to be used to conduct transactions that served the commercial interest of the company. The defendant failed to consult compliance and unceremoniously executed ten OTC transactions based on this information. The committee took into account the fact that the transactions took place about seven years ago, but found the complaint partially justified.

Articles DSI Code of Conduct applicable: Article 7.1.2

The Disciplinary Committee imposed a fine of €1,000 on the defendant. No order for costs of proceedings was imposed.

Linkage to DSI Core Principles.

• Core principle 1: Take responsibility:
  As a board member, the Respondent had an exemplary role and was required to take responsibility for handling confidential information with integrity and complying with the Code of Conduct.
• Core Principle 6: Ensure confidentiality:
  Sharing and using strictly confidential information to carry out transactions violates the standard of carefully handling confidential data within the financial industry.