Ruling Disciplinary Committee | DSI-2024-02

On August 27, 2024, the DSI Disciplinary Committee ruled in a case against a certified person who worked as a Senior Asset Manager / Advisor Investment Bespoke Retail.

Disciplinary Committee ruling

DSI’s complaint concerned advice to clients on investments in so-called TCA funds, which later became discredited and are now in liquidation. DSI alleged that the certified had a central role in these investments, had violated internal investment policies, had provided investment services through his private company without a license and had not acted with sufficient care towards clients.

The Disciplinary Committee found that the certified advised clients to invest in TCA funds. However, it was not established that he had a central role in the selection of these funds, that investing in TCA was not permitted within the firm, or that he was responsible for excessive concentration of TCA in client portfolios. There is also no evidence that he provided licensed investment services through his private company.

However, the Disciplinary Committee does find that the certified did act carelessly by communicating with the same clients using both his employer’s and his private company’s e-mail address. This created ambiguity about his role and insufficiently avoided the appearance of a conflict of interest.

The complaint was therefore partially upheld, only with respect to the failure to prevent a conflict of interest. The remaining parts of the complaint have been declared unfounded. The Disciplinary Committee refrains from imposing a measure.

DSI Core Principles

• Core principle 7: Be clear about interests
  (DSI Code of Conduct article 7.1.8)