Ruling Disciplinary Committee | DSI 2024-01

On August 27, 2024, the DSI Disciplinary Committee ruled in a case against a certified person who worked as an Investment Advisor (tied agent).

DSI Disciplinary Committee ruling

The case followed an incident report about investments in TCA funds, which were later discredited and are now in liquidation. Following a review request, the complaint was still referred to the Disciplinary Committee. DSI stated that the certified had acted negligently in bringing clients to these funds when there may have been a violation of the internal investment policy. At the same time, DSI indicated that in its opinion this carelessness was not serious enough for a disciplinary reproach.

The Disciplinary Committee notes that the certified person’s role was limited to bringing clients and conducting intake interviews. He was not responsible for selecting funds or composing portfolios. It has not been established that investing in TCA funds violated applicable investment policies, nor that the certificant should have understood that these investments were not permitted. Nor was there any evidence that he advised clients to invest in TCA funds or that he received commissions.

In addition, the Disciplinary Committee ruled that reproaches about overly risky investments and excessive concentrations in portfolios could not be attributed to the certified, as he had no responsibility for asset management.

The Disciplinary Committee declares the complaint unfounded and finds no violation of the DSI Code of Conduct. No measure is imposed.

DSI Core Principles

• Core principle 3: Act carefully
  (no violation identified)