Be clear about interests
Avoid conflicts of interest. In the complex financial sector, it is important to be transparent about (potential) conflicts of interest. Mixing personal and business interests can damage trust in the industry and should be actively avoided.
DSI core principles in practice
What can you learn from the fine imposed by DSI on June 24, 2021?
A certified investment specialist employed by an asset management company was fined by DSI for mixing personal interests with those of investors. The specialist had taken a position in the same stock both privately and on behalf of an investment fund of his employer.
DSI investigations revealed that he used his private account and the fund’s account to place opposite orders. For example, he sold shares from his private portfolio to the fund and also purchased shares on behalf of the fund. In doing so, he acted simultaneously for his own account and for the account of investors.
DSI concluded that there was a conflict of interest. This is contrary to article 7.1.8 of the DSI Code of Conduct. In addition, the specialist did not comply with his employer’s internal regulations for private investment transactions.
Be transparent about your interests and avoid any conflict of interest.
What does this mean to you?
Clarity of interests is essential to trust in the financial sector. Even if private transactions seem innocent, there may be a conflict of interest. Therefore, always consider your own role and be open with your manager or compliance when in doubt. By acting transparently and actively preventing conflicts of interest, you demonstrate professionalism and integrity.
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.
