CISI Disciplinary Process

Membership of the CISI requires members to meet standards set out within the Institute's Principles. These Principles impose an obligation on members to act at all times not only in compliance with the rules, but also to support the underlying values of the Institute.

Code of Conduct

Professionals within financial services owe important duties to their clients, the market, the profession and society. Where these duties are set out in law or regulation the professional should comply with the requirements in both letter and spirit.

Members of the Chartered Institute for Securities & Investment (CISI) are also required to meet the standards set out within the CISI’s eight Principles, which impose an obligation on members to act at all times not only in compliance with the rules, but also to support the underlying values of the Institute.

Each Principle specifies the duties owed by members to one or more stakeholders who may be impacted by their actions.

There may be situations where professionals are faced with making a decision where the correct course of action is not immediately obvious. In addition to referring to the Code, consideration of the following simple checklist will help to decide the best course of action; is the course of action you are considering honest, open, transparent, and fair?

Honest

Have I been truthful about my action or decision with everyone involved, and told no lies or 'half-truths'?

Open

Is everyone affected by my action or decision aware of the consequences?

Transparent

Have I been clear and not misleading to any party involved in reaching my decision?

Fair

Have I made sure that my action or decision will not result in any party being unknowingly disadvantaged or unduly advantaged?

CISI Code of Conduct - Principles

Principle 1
Stakeholder(s): Clients
To act honestly and fairly at all times...
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Principle 2
Stakeholder(s): Firm | Profession
To act with integrity in fulfilling the...
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Principle 3
Stakeholder(s): Regulator
To observe applicable law...
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Principle 4
Stakeholder(s): Market | Participant
To observe the standards of market...
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Principle 5
Stakeholder(s): Client
To be alert to and manage fairly and...
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Principle 6
Stakeholder(s): Client | Colleagues | Staff
To attain and actively manage...
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Principle 7
Stakeholder(s): Client | Self
To decline to act in any matter about...
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Principle 8
Stakeholder(s): Profession | Self
To strive to uphold the highest personal...
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What is a disciplinary offence?

Members are expected to inform the CISI in a timely manner of anything (e.g. commencement of a disciplinary investigation by your employer, or conviction of a criminal offence) which may affect their suitability to remain a member.

A disciplinary offence is a breach of the CISI Membership Regulations – these are the rules that govern the professional behaviour of all CISI members. A full list of disciplinary offences can be found in Section 16 of the CISI Membership Regulations.

In summary, the Institute can take disciplinary action against any member who:

  • (a) commits any act likely to bring discredit to himself/herself
  • (b) performed work incompetently
  • (c) failed to satisfy a judgement debt
  • (d) breached any of the CISI Regulations
  • (e) failed to pay membership
  • (f) failed to undertake the required amount of CPD
  • (g) failed to comply with an order of the Disciplinary Panel

Disciplinary self-declaration form:

Should you need to declare a disciplinary matter, you can do so by emailing standards@cisi.org with the following information:

  • the nature of offence/incident
  • chronology of event(s)
  • if relevant, details of the conviction
  • relevant written representations regarding the matter, which may include any mitigating circumstances you wish to be considered.

Do I need to raise a complaint?

Professionals within securities and investment owe important duties to their clients, the market, the profession and society at large. Where these duties are set out in law, or in regulation, the professional must always comply with the requirements in an open and transparent manner. A material breach of the Code of Conduct would be incompatible with continuing membership of the CISI.

Please note that a complaint to the Institute is not a substitute for using a firm’s established complaint handling procedure, nor can it cover complainants seeking financial redress, in which case complaints should be referred to the Financial Ombudsman Service (FOS). The Advisory, Conciliation and Arbitration Service (Acas) provides free and impartial advice on aspects of workplace relations and employment law. Some tips on dealing with disputes from Acas are available here.

If you are based in the UK, you can find out more information on the Financial Conduct Authority Website (FCA): How to complain, the Prudential Regulation Authority (PRA) and the Financial Ombudsman Service (FOS).

If you still feel you need to raise a complaint please answer the questions below.

Is the individual a member of the CISI?

Yes No Don't know
The CISI cannot discipline or investigate individuals who are not CISI members.

Has the individual materially breached the CISI Membership Regulations, one or more of the principles of the CISI’s Code of Conduct?

Yes No
The CISI can only discipline members breaches of the CISI Membership Regulations, and Code of Conduct. It may be more appropriate for you to refer your complaint to another regulatory body, for example the FCA.

Have you spoken to the individual's employer?

Yes No
It may be possible to address the issue quickly by talking to the person involved, or their employer. This gives them the chance to look into the matter and put it right. Details of how to make a complaint should be available on the firm's website.

Should you still wish to raise a complaint, you can do so here.

Was your complaint handled to your satisfaction?

Yes No
If you are not happy with the response, the individuals employers rejects your complaint or you do not hear from them within 8 weeks, the Financial Ombudsman Service may be able to help you.

Should you still wish to raise a complaint, you can do so here.
Please advise us of the outcome using the complaints form.
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Summary of the CISI Disciplinary Process

Step 1
Misconduct allegation received by the CISI Professional Standards team. The team will review the information to see if it is appropriate for the CISI to investigate, and proceed accordingly.
Step 2
Should there be grounds for an investigation, the misconduct allegation will be reviewed by the Disciplinary Review Panel. The Disciplinary Review Panel decide whether or not, there is a case to answer.
Step 2: Scenario One
The Disciplinary Review Panel could conclude that there is "no case to answer", in which the member will be notified, and no further action will be taken.
Step 2: Scenario Two
Scenario Two: The Disciplinary Review Panel could conclude that there is a "case to answer" and the member will be notified.
Step 3
Should there be a "case to answer" the member will be informed of the formal allegations, and given the opportunity to provide further information, e.g. written evidence/statement.
Step 3: Scenario One
Scenario One: After further investigation, by the Disciplinary Review Panel could conclude there is "no case to answer". The member will be notified, and no further action will be taken.
Step 3: Scenario Two
The Disciplinary Review Panel coud conclude there is a case to answer, the member will be notified that their case will be referred to the Disciplinary Panel.
Step 4
Should there be a "case to answer", a Disciplinary Hearing will be scheduled which the member can attend with a guest of their choosing. A report to the Disciplinary Panel will be shared with the member and panel, which will provide detailed information on the case, any written submissions and evidence prior to the hearing date.
Step 5
Once the Disciplinary Panel has reached their final decision, there will be either (a) sanctions imposed (b) no further action to take. Should the member wish to, they can request to appeal the decision.
Step 6
In summary, possible sanctions, should they be imposed include: additional hours of CPD; completion of IntegrityMatters test; denial of CISI facilities; reprimand; severe reprimand; suspension; reduction in member status and expulsion.
Step 6: Scenario One
Case has been concluded, and the member has not made a request to appeal.
Step 6: Scenario Two
Scenario Two: The member has made a request to appeal, which has been approved, and the case is heard by the Appeals Panel.
Step 7
Appeals Panel reach the final decision and the findings are either upheld amended or overturned.

Disciplinary Findings

It is necessary to ensure members comply with the Institute’s Charter, Bye-Laws and Regulations (including the CISI Code of Conduct) through the Institute’s disciplinary process. The application and administration of the Institute’s disciplinary process shall be overseen and directed by the Disciplinary Committee.

Mr Peter Treverton-Jones, Chartered MCSI 24 June 2020

We were notified by Mr Treverton-Jones that he had been dismissed by his previous employer, following an internal disciplinary investigation, for amending a client document and failing to obtain verification of or consent for the changes from the client. Mr Treverton-Jones was found by the CISI to have committed disciplinary offences under sections 16.1 (a) and 16.1 (d) of the CISI Membership Regulations and to have breached several Code of Conduct principles.

Mr Treverton-Jones received a suspension of Chartered status for 12 months and is required to complete an additional 12 hours of CPD within the next 12 months.


Mr Kevin Gilligan ACSI 10 June 2020

We discovered that Mr Gilligan had been personally sanctioned by the Guernsey Financial Services Commission and prohibited from performing the functions of director, controller, partner or manager of a regulated entity for six years and two months. The Commission’s investigation found that a regulated firm, of which Mr Gilligan was a director, failed to (1) administer certain funds in accordance with the principal documents and information particulars, (2) abide at times with contractual and legal obligations, (3) adequately identify and manage conflicts of interest, (4) obtain adequate client due diligence and enhanced due diligence in relation to its book of business, (5) at times effectively monitor business relationships and transactions, (6) at times, to ensure that proper books and records were kept and that these were readily retrievable and (7) at times, to exercise effective policies procedures and controls for forestalling, preventing and detecting money laundering and terrorist financing. It also found that the directors failed, at times, to adhere to a director’s fiduciary duty to act in the best interest of a company.

Mr Gilligan was found to have breached the disciplinary offences 16.1 (a), 16.1 (b) and 16.1 (d) as per the CISI Membership Regulations, including several Code of Conduct principles.

Mr Gilligan has been expelled from CISI membership for a period of six years and two months.


Mr Derek Baudains FCSI 11 June 2020

Mr Baudains notified us that he had been personally sanctioned by the Guernsey Financial Services Commission. The Commission’s investigation found that a regulated firm, of which Mr Baudains was a director, failed to (1) administer certain funds in accordance with the principal documents and information particulars, (2) abide, at times with contractual and legal obligations, (3) adequately identify and manage conflicts of interest, (4) obtain adequate client due diligence and enhanced due diligence in relation to its book of business, (5) at times, effectively monitor business relationships and transactions, (6) at times, ensure proper books and records were kept and that these were readily retrievable and (7) at times, exercise effective policies procedures and controls for forestalling, preventing and detecting money laundering and terrorist financing. It also found that the directors of the regulated firm failed, at times, to adhere to a director’s fiduciary duty to act in the best interest of a company.

Mr Baudains was found to have breached the disciplinary offences 16.1 (a), 16.1 (b), and 16.1 (d) as per the CISI Membership Regulations, including several Code of Conduct principles.

Mr Baudains received a severe reprimand from the CISI, which will remain on his membership record for 12 months and a reduction in his CISI membership status from Fellow to Member for a period of 12 months. During this period, he is required to successfully complete the CISI’s IntegrityMatters test.


Mr Julian Lane, Chartered MCSI 11 June 2020

Mr Lane notified us that he had been personally sanctioned by the Guernsey Financial Services Commission. The Commission’s investigation found that a regulated firm, of which Mr Lane was a director and the MLRO for a period of time, failed to (1) administer certain funds in accordance with the Principal Documents and Information Particulars, (2) abide, at times with contractual and legal obligations, (3) adequately identify and manage conflicts of interest, (4) obtain adequate client due diligence and enhanced due diligence in relation to its book of business, (5) at times, effectively monitor business relationships and transactions, (6) at times, ensure proper books and records were kept and that these were readily retrievable and (7) at times, exercise effective policies procedures and controls for forestalling, preventing and detecting money laundering and terrorist financing. It also found that the directors of the regulated firm had failed, at times, to adhere to a director’s fiduciary duty to act in the best interest of a company.

Mr Lane, a member with Chartered status, was found to have breached the disciplinary offences 16.1 (a), 16.1 (b), and 16.1 (d) as per the CISI Membership Regulations, including several Code of Conduct principles.

Mr Lane has been expelled from CISI membership for a period of six months.



Chartered FCSI 16 April 2020

A Chartered Fellow notified the CISI that they had been subject to disciplinary action by their employer and was invited to appear before a Disciplinary Panel on 1st April 2020. The member was found to be in contravention of several principles within the CISI Code of Conduct, including the upholding of personal and professional standards at all times. The Disciplinary Panel also found the member to be in breach of the following disciplinary offences in the CISI Membership Regulations: 

16.1(a) if, whether in the course of work (within the financial services industry or other industries) or in the course of his/her personal life or otherwise, a member has committed any act or default likely to bring discredit to himself/herself, the Institute or the securities, investment, wealth and financial planning profession.”

16.1 (d) if a member has committed any breach of these Regulations (including the Regulations of professional conduct at paragraph 3 of the Regulations) or of any provision of the Institute’s Charter, Bye-Laws and General Regulations or any other Regulations made thereunder.”

The member received a severe reprimand that will remain on their record for a 6-months, during which time their Chartered status will also be suspended. The member must also complete the CISI’s IntegrityMatters test within 6 months.



Mr Daljit Maker MCSI 6 April 2020

Mr Maker notified the CISI that he had been subject to disciplinary action by his then employer and was requested to appear before a CISI Disciplinary Panel on 23rd March 2020. Mr Maker was found to have breached a number of the principles contained with the CISI Code of Conduct in relation to his dealings with a specific client and was also found to be in breach of the following disciplinary offences of the CISI Membership Regulations: 


16.1(a) if, whether in the course of work (within the financial services industry or other industries) or in the course of his/her personal life or otherwise, a member has committed any act or default likely to bring discredit to himself/herself, the Institute or the securities, investment, wealth and financial planning profession."

16.1 (d) if a member has committed any breach of these Regulations (including the Regulations of professional conduct at paragraph 3 of the Regulations) or of any provision of the Institute’s Charter, Bye-Laws and General Regulations or any other Regulations made thereunder.”

Mr Maker received a severe reprimand that will remain on his record for 12-months and must also complete the CISI’s IntegrityMatters test within a 6-month period. 


Daniel Coleman, Chartered FCSI 11 December 2019

Mr Coleman notified that he had been subject to disciplinary action by his employer and was invited to appear before a Disciplinary Panel. After the Panel considered the matter and submissions, they found him in breach of the CISI Membership Regulations and Code of Conduct. Mr Coleman received a suspension of Chartered status for a period of 18 months, only being permitted to use FCSI designatory letters during this time and required to complete an additional five hours of CPD, within a six-month period.

 

Disciplinary findings will appear on the CISI website for as long as a sanction remains on a member’s record. The recommended time a sanction should remain on a member’s record is set by the Disciplinary Panel, and is usually 12 months from the date of the hearing.

A Disciplinary Panel may determine that a member is in breach of the regulations, and impose a sanction, but use their discretion not to publish the findings. Reasons why a Disciplinary Panel may determine that publication is inappropriate include (but are not limited to):

  1. That doing so would harm a third party;
  2. The member is considered to be, and has provided information to demonstrate, that they are a vulnerable individual;
  3. That doing so would prejudice an ongoing investigation into the same/similar matter by another organisation.