Ruling Disciplinary Committee | DSI 2019-01

Allegations of serious violations of code of conduct: complaint unfounded

On Jan. 30, 2020, the DSI Disciplinary Committee ruled in a case against a certified person who worked as a Managing Director and Senior Asset Manager.

Disciplinary Committee ruling

The case followed a report from an investor about alleged improper conduct by the certified person in his role as CEO of an investment firm. The complaints included making an incorrect statement to the Kifid, failure to provide transcripts of telephone conversations, lack of permits, influencing complaint procedures at a foreign executing party and inadequate functioning of the compliance function. After a request for review, the complaint was still submitted to the Disciplinary Committee in substance.

The Disciplinary Committee finds that none of the elements of the complaint constitute disciplinary culpability. It has not been established that the certified made false statements, knowingly withheld information from clients or exerted undue influence on complaint procedures. Nor was it established that the firm did not have the required licenses or that the certified was personally responsible for deficiencies in the compliance function.

In addition, the Disciplinary Committee emphasizes that taking formal or legal positions in proceedings, such as before the Kifid, is in principle permissible and is not necessarily contrary to the DSI Code of Conduct. Moreover, the file shows that the certified has adopted a sufficiently open and verifiable attitude towards the reporter.

The complaint is therefore dismissed as unfounded. No action is imposed.

DSI Core Principles

• Core principle 5: Comply with rules (no violation established)
• Core principle 1: Take responsibility (no violation established)