Disciplinary Process

One of the Institute’s foremost objectives is to promote the highest standards of trust, integrity and ethics amongst its members and throughout the securities, investment, wealth and financial planning professions generally.

To ensure these high standards are upheld, it is necessary to also ensure that members comply with the Institute’s Royal Charter & Bye Laws and Membership Regulations (including the CISI Code of Conduct) through the Institute’s disciplinary process.

The Institute’s disciplinary process is overseen and directed by the Disciplinary Committee.

The Disciplinary Committee delegates its decision-making authority to the Disciplinary Review Panel (DRP) who review all cases, in the first stage. The DRP consider all information provided and written representation from the member, before making their decision on whether there appears to be a case to answer. In doing so the DRP may:

refer the matter to the Disciplinary Panel; or
if the offence is not an Administrative Offence and not considered sufficiently material for referral to the Disciplinary Panel, they may send an appropriate strongly worded warning letter reminding the member of the Institute’s expected levels of behaviour as well as recommending additional CPD which could include the retaking of the IntegrityMatters test, or
should there be no case to answer, close the case.

Please note as a Professional Body, the CISI has no regulatory jurisdiction or investigatory powers, so any judgements made are solely based on breaches of the CISI Membership Regulations and Code of Conduct to which members have signed up to adhere to.

Guidance for members on the disciplinary process

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 case 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, 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 could 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.

On an annual basis, members are required to declare any breach(es) of the CISI Membership Regulations or Code of Conduct, in a timely manner. This may be in relation to:

Failure to satisfy a judgement debt
A Bankruptcy order or IVA
A criminal conviction
Disciplinary action/sanction by their employer
A disciplinary sanction/fine imposed by a Regulatory Body or other Professional Body

Please note that failure to report a breach could lead to a further disciplinary action being taken against a member for non-disclosure.

How to Self-declare a disciplinary offence:

If not already declared, members are required to make a declaration via their annual renewals for Membership, SPS, CFP™ or Certificate of Professionalism.

Additionally, Members can make a declaration by emailing standards@cisi.org with the following information:

the nature of offence/incident
chronology of event(s)
relevant details and supporting documentation (Disciplinary Hearing invitation/Outcome letter)
relevant written representations regarding the matter, which may include any mitigating circumstances you wish to be considered.

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) entered into an Individual Voluntary Agreement (IVA) or International equivalent and defaulted on payment
(e) breached any of the CISI Regulations
(f) failed to pay membership
(g) failed to undertake the required amount of CPD
(h) failed to comply with an order of the Disciplinary Panel
(i) pleaded guilty or been found guilty by a court of a criminal offence
(j) received a penalty including a reprimand imposed by a Regulatory Body or other Professional Body

Please note a member shall not be considered guilty of a disciplinary offence by virtue of any act, omission or failure occurring at a time before they became a member of the Institute provided that the member made a full and frank written disclosure of the act, omission or failure in connection with their application for membership.

If a member has been found to be in breach of the CISI Membership Regulations and receives a sanction as listed under 19.2 of the CISI Membership Regulations, they may incur an administrative cost in relation to the proceedings, which will be payable to the CISI.

Members may be awarded all or part of the administrative costs incurred from disciplinary proceedings, which usually are:

Disciplinary Hearings – minimum of £500
Administrative Sanctions- minimum of £100

Please note, cases that have pro-longed timelines, require legal representation or expert witnesses may lead to higher costs.

Costs allocated must be paid within 31 days of the date of the Disciplinary Panel’s order (or such longer period as the Disciplinary Panel determines). The determination of the allocation of costs, will be reviewed in relation to the member’s financial stability.

The member will be able to make a representation in respect of costs and will also be given a timeline to appeal any decision made by the CISI.

Complaints

Do I need to raise a complaint?

Professionals working in securities and investment owe important duties to their clients, the market, the profession, and society at large. Where these duties are defined by law or regulation, members are expected to comply fully, openly, and transparently. A material breach of the Code of Conduct may be incompatible with continued membership of the CISI.

Scope of Our Complaints Process

Allegations brought to the attention of CISI regarding potential breaches of the Membership Regulations or the Code of Conduct by members will be assessed and, where appropriate, investigated. Members subject to complaint will be given a fair opportunity to respond.

Please note:

CISI does not have regulatory jurisdiction or formal investigatory powers so does rely on the outcome of completed investigations, by firms, legal authorities, and regulators.
A complaint to CISI is not a substitute for using a firm’s established complaint-handling process. Concerns about the delivery of professional services should first be addressed directly with the service provider in accordance with their terms of business. If unresolved, complaints may be escalated to the Financial Ombudsman Service, the Financial Conduct Authority (FCA), or the relevant international regulator where applicable.
CISI does not regulate firms, so is unable to provide assistance in regards to complaints seeking financial redress. It is recommended to contact the relevant regulator.

Complaints Review Policy

To ensure the integrity and fairness of our disciplinary process, we have established the following guidelines for submitting complaints:

We do not accept anonymous complaints. All submissions must include the complainant’s full name and contact details.
Complaints must be based on clear, specific information regarding the alleged conduct and substantiated evidence and documentation must be provided to support the allegation(s). Unsubstantiated claims will not be considered.

We reserve the right to decline to investigate any complaint that does not meet these requirements.

Please note, we are unable to accept complaints that:

Are currently under review by or have already been determined and not upheld by the FCA, the Financial Ombudsman Service (FOS), or international regulator.
Relate to matters involved in ongoing litigation or unresolved legal proceedings.
Involve claim disputes, which fall outside the scope of our disciplinary review process.
Are seen to be defamatory, malicious, or deemed vexatious.

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.

Restart

How do I raise a formal complaint with the CISI ?

If you wish to submit a complaint against a CISI member, please email your complaint to the Professional Standards team at standards@cisi.org. Please ensure that you provide all relevant documentation to provide us with the necessary basis to consider the matter, in line with our procedures.

Disciplinary Findings

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):

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

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.

In 2022/23 the CISI Disciplinary Review Panel reviewed 66 cases, of which 44% were also disciplined by their employers, 19% related to driving offenses, 16% related to other criminal offences and 14% were regulatory sanctions. The remaining few cases related to credit issues and complaints made against members. Of all the above cases, 10 were found to be serious enough to be referred to a Disciplinary Hearing Panel.

Chartered MCSI - July 2024

In 2023, the member was convicted of Driving a Motor Vehicle with Alcohol Concentration Above the Prescribed Limit and as a result, received a 15-month disqualification and £1,600 in fines. The member was also ordered to retake their driving test. Following a Panel Hearing, it was found that the member had breached paragraphs 16.1 (a), (e), and 16.2 (a) of the CISI Membership Regulations, as well as 3.1, Personal Accountability of the CISI Code of Conduct. As a result, the member received a Severe Reprimand which will remain on their record for 12 months. The member is also required to retake and pass the CISI IntegrityMatters test within 6 months.

CFPTM MCSI - July 2024

In 2023, the member was convicted of Driving a Motor Vehicle with Excess Alcohol and as a result, received a 26-month disqualification and £1,705 in total fines. Following a Panel Hearing, it was found that the member had breached paragraphs 16.1 (a), (e), and 16.2 (a) of the CISI Membership Regulations, as well as 3.1, Personal Accountability of the CISI Code of Conduct. As a result, the member received a Severe Reprimand which will remain on their record for 12 months. The member is also required to retake and pass the CISI IntegrityMatters test within 6 months.

ACSI - June 2024

In March 2023, a member was dismissed from their firm for improper use of a recorded line and making one-sided Skype calls to appear busier than they were.

Following a CISI Disciplinary Panel Hearing it was found that the member had breached paragraphs 16.1 (a) and 16.1 (e) of the CISI Membership Regulations. As a result, the member received a reprimand which will remain on their file for 12 months. The member is also required to retake and pass the CISI IntegrityMatters test within six months.

Brett Armitage, formerly Chartered MCSI - May 2022

The Isle of Man Financial Services Authority conducted a supervisory inspection in respect of Bridgewater (IOM) Limited, that identified contraventions of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2019 (“the Code”) (“the Contraventions”). The Investigation identified a range of issues which caused it to assess the fitness and propriety of the persons undertaking certain controlled functions at Bridgewater (IOM) Limited. As a result, the Authority concluded that the individuals holding such roles are not fit and proper to hold the roles at Bridgewater (IOM) Limited and, in certain instances, in the regulated sector in the Isle of Man and therefore exercised its powers under s.10A of the Act to prohibit those role holders from continuing in those positions. As a result, Mr Armitage is prohibited from working in the financial services industry in or from the Isle of Man for five years.

The CISI found that Mr Armitage had breached paragraphs 16.1 (a) and (e), as well as 16.2 (b) of the CISI Membership Regulations. As such, Mr Armitage has been expelled from CISI membership for 5 years, to run coterminously with his sanction from the Isle of Man Financial Services Authority and has therefore, forfeited his Chartered MCSI designation.

Gufur Hussain, formerly Chartered MCSI - September 2021

The Jersey Financial Services Commission (the “Commission”) determined that Mr Hussain had failed to declare conflicts of interest in dealing with clients, overridden safety measures put in place by the Commission to protect a client who had been deemed a ‘vulnerable person’ and on several occasions failed to disclose certain information requested by or due to the Commission. The Commission concluded that Mr Hussain lacks integrity and therefore banned him from performing any function for, engaging in any employment with, or holding any position in any business licensed to conduct financial services in Jersey without the prior written approval of the Commission.

The CISI found Mr Hussain to have breached Clauses 16.1 (a) (as a result of contravening 16.2) and 16.1 (e) of the CISI Membership Regulations, as well as several CISI Code of Conduct principles.

As a result, Mr Hussain has been permanently expelled from CISI membership and forfeited his Chartered MCSI designation.

Kevin Gilligan, ACSI - June 2020

The CISI 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.