Show expertise
Give careful and professional advice to your client. At a time when advice is increasingly supported by data, it remains critical that this advice is always careful and appropriate. Careless advice can lead to large financial losses for clients and has legal and reputational implications for the company and the advisor. Combining data with the right personal expertise ensures trust and the delivery of valuable advice.
DSI core principles in practice
What can you learn from this DSI-2018-05 ruling by the DSI Disciplinary Committee?
A certified manager of a financial company was instructed by the Board of Directors to execute a large transaction. There was discussion within the organization about this transaction because there were indications that confidential information may have been involved. Nevertheless, the Board of Directors decided to go ahead.
The manager was faced with a choice: should he follow the order or use his professional knowledge to further investigate the potential risks? He chose to proceed with the transaction, assuming that the Board had already made the ethical consideration.
The Disciplinary Committee ruled that the manager himself bore responsibility in this. As a senior professional, he should have recognized on the basis of his expertise that the situation posed an integrity risk. He should have discussed this and, if necessary, called in compliance. Relying on the decision of higher authority without his own professional consideration was not sufficient.
Actively apply your expertise and use your professional judgment.
What does this mean to you?
Showing expertise means actively using your knowledge and experience when making decisions. Even when a decision comes from on high, your professional judgment remains leading. Do you see risks or ambiguities? Ask questions, test assumptions and involve compliance where necessary. By using your expertise, you contribute to sound and responsible decision-making.
DSI Core Principles
At DSI, ten core principles are central to the essence of our Code of Conduct. They offer financial professionals guidance on how to act with integrity on a daily basis and strengthen trust in the sector. Every DSI certified professional commits to these principles so that together we contribute to a transparent and honest financial sector.
