DSI GENERAL REGULATIONS 1
Contents Definitions Article 1 Duties and powers Article 2 Categories and positions Article 3 General criteria for registration Article 4 Admission procedure Article 5 Termination of registration Article 6 Code of conduct Article 7 Maintenance and provision of information Article 8 House rules Article 9 Disciplinary measures Article 10 Disputes Committee Article 11 Complaints Committee Article 12 Disciplinary Committee Article 13 Arbitration Committee Article 13a Appeal Committee Article 14 Public nature of register Article 15 Notifications Article 16 Costs Article 17 Alterations Article 18 Transitional arrangements Article 19 2
Article 1: Definitions Managing Director: General Regulations: Arbitration Committee: Investment Adviser: Financial Analyst: Board: Sector: Appeals Committee: Participants: DSI: the person referred to in Article 8, paragraph 4, of the Constitution of the Foundation; the General Regulations of DSI; Arbitration Committee as referred to in Article 13a of these regulations; a person who, working either in the employ of a Participant or independently, advises investors on the setting up of a securities portfolio consisting of individual securities or by means of investment funds and can for this purpose use research by Financial Analysts for the benefit of the client s portfolio, and a person who acts in a management capacity in this field; a person who, working either in the employ of a Participant or independently, gives opinions on future market developments and on whether it is worth buying particular securities based on information in the public domain and who provides these opinions professionally to third parties inside or outside his own organisation, and a person who acts in a management capacity in this field; the executive board of the Foundation; the securities sector, including in any event stockbroking, the supervision and guaranteeing of issues of securities, securities trading and financial analysis, the provision of advice on investments and asset management, whether or not performed within the context of the activities of the securities institutions referred to in the Securities Transactions (Supervision) Act (Wte), which may offer or perform their services pursuant to the licence referred to in the Securities Transactions (Supervision) Act or pursuant to Article 7, paragraph 2; the Appeals Committee referred to in Article 14 of these General Regulations; the legal persons, partnerships, limited partnerships and similar partnerships under foreign law or, as the case may be, natural persons, which organisations or persons entered in the Registers who work in the Sector and fulfil the licence requirement set out in Section 7, subsection 1, of the Securities Transactions (Supervision) Act or are eligible for exemption from the licence requirement referred to in section 7, subsection 2 (a), (f), (h), (i) and (j) of the Securities Transactions (Supervision) Act; the foundation known as Stichting DSI 3
Securities Trader: a person who executes securities orders independently or who trades on his own account or on account of a Participant for whom he works, and a person who acts in a management capacity in this field; Securities Market: a market intended to match supply and demand for securities; Registered Practitioner(s): (a) natural person(s) of full age who is/are entered in the Registers and works in the Sector for a Participant; Disputes Committee: Disputes Committee as referred to in Article 11 of these General Regulations; Candidate(s): (a) person(s) or institution(s) that has/have applied in writing for entry in the Registers as a Registered Practitioner or Participant; Office: the address of the Foundation; Complaints Committee: Complaints Committee as referred to in Article 12 of these General Regulations; Registers: the separate public registers kept by the Foundation and containing particulars of Registered Practitioners and Participants; Regulations: the rules and regulations of DSI drawn up by or on behalf of the Board and approved by the Board; Appeal Rules: the Appeal Rules referred to in Article 14 of these General Regulations; Disputes Committee Rules: the Disputes Committee Rules referred to in Article 11 of these General Regulations; Complaints Committee Rules: the Complaints Committee Rules referred to in Article 12 of these General Regulations; Representative Organisation(s): the list of Representative Organisations A to G referred to in Article 5, paragraph 1, of the Constitution or the list of Representative Organisations as it may be amended from time to time; Senior Investment Adviser: an Investment Adviser who fulfils the criteria regarding experience and qualifications as specified in Annex I to these General Regulations; Senior Financial Analyst: a Financial Analyst who fulfils the criteria regarding experience and qualifications specified in Annex I to these General Regulations; Senior Securities Trader: a Securities Trader who fulfils the criteria regarding experience and qualifications specified in Annex I to these General Regulations; Senior Fund Manager: a Fund Manager who fulfils the criteria regarding experience and qualifications specified in Annex I to these General Regulations; Constitution: the constitution of the Foundation; Foundation: the foundation known as Stichting Dutch Securities Institute; Disciplinary Committee: the Disciplinary Committee as referred to in Article 13 of these General Regulations; 4
Disciplinary Rules: Fund Manager: Chairman: the Disciplinary Rules as referred to in Article 13 of these General Regulations; a person who, working either in the employ of a Participant or independently, is contractually authorised to carry out investment transactions on account and at the risk of clients, and a person who acts in a management capacity in this field; a member of the Board who, in the opinion of the Board, is independent and is not elected from among the membership of the Board. Article 2: Duties and powers 2.1 The object of DSI, under its Constitution, is to help to maintain and improve the quality of the securities market in the Netherlands and the confidence placed in it by the investing public, among other things by adopting and maintaining a system of professional standards for the expertise, probity and competence of the natural persons employed in the Sector and by maintaining and promoting good professional practice by such persons. 2.2 DSI issues a certificate of compliance with the Foundation s standards of expertise, probity and competence, by means of entry of the relevant particulars of Registered Practitioners and Participants in the Registers. For this purpose DSI shall keep Registers and process the entries and cancellations of entries of Registered Practitioners and Participants in the Registers. 2.3 DSI shall institute a complaints committee to decide on complaints made by the investing public against Participants. 2.4 DSI shall also endeavour to achieve its object by establishing and maintaining: 2.4.1 a Disciplinary Committee that decides on complaints against Registered Practitioners that have been lodged by the Foundation and emanate from the Foundation or the investing public; 2.4.2 a Disputes Committee that decides on disputes between the Foundation and Candidates, Registered Practitioners or Participants regarding the entry of Candidates, Registered Practitioners or Participants in the Registers and regarding the cancellation of such entries; 2.4.2a An Arbitration Committee that decides on disputes of a professional or business nature concerning securities trading and decides in accordance with the Rules of the Arbitration Committee; 2.4.3 one or more Appeal Committees that decides on appeals against a decision of the Complaints Committee, Disciplinary Committee and Disputes Committee. 2.5 DSI is also responsible for recognising committees such as the Complaints Committee that have a function or object similar to that of the Complaints Committee referred to above at 2.3. 5
2.6 DSI is also responsible for imposing or executing penalties and measures, whether or not on the basis of rulings of the Disciplinary Committee, the Complaints Committee or the Appeal Committee or on the basis of rulings of any other committee instituted or recognised by the Foundation or of judges, arbitrators or advisers empowered to make binding recommendations. 2.7 DSI shall formulate training criteria and criteria for continuing education, examination standards and the incorporation therein of probity criteria or the recognition of such criteria, standards and probity criteria as may be formulated or prescribed by third parties. 2.8 DSI shall act as authoritative institution in the exchange of ideas on and research into subjects and issues directly connected with aspects of expertise, probity and competence in the Sector. Article 3: Categories and Positions 3.1.1 DSI distinguishes between the following categories: 1. Representative Organisations; 2. Participants; 3. Registered Practitioners. 3.1.2 Further rules governing admission and the rights and obligations of Participants and Representative Organisations shall be laid down in these General Regulations or in further Regulations. 3.2 As regards the Registered Practitioners, DSI distinguishes between the following positions: 3.2.1 Securities Trader: a holder of this position may be registered in the Register of Securities Traders; a person who is entered in this Register is entitled to use the titles DSI Securities Trader or DSI Register I-A; Senior Securities Trader: a holder of this position may be registered in the Register of Senior Securities Traders; a person who is entered in this Register is entitled to use the titles DSI Senior Securities Trader or DSI Register I-B; 3.2.2 Investment Adviser: a holder of this position may be registered in the Register of Investment Advisers; a person who is entered in this Register is entitled to use the titles DSI Investment Adviser or DSI Register II-A; Senior Investment Adviser: a holder of this position may be registered in the Register of Senior Investment Advisers; a person who is entered in this Register is entitled to use the titles DSI Senior Investment Adviser or DSI Register II-B; 3.2.3 Fund Manager: a holder of this position may be registered in the Register of Fund Managers; a person who is entered in this Register is entitled to use the titles DSI Fund Manager or DSI Register III-A; 6
Senior Fund Manager: a holder of this position may be registered in the Register of Senior Fund Managers; a person who is entered in this Register is entitled to use the titles DSI Senior Fund Manager or DSI Register III-B; 3.2.4 Financial Analyst: a holder of this position may be registered in the Register of Financial Analysts; a person who is entered in this Register is entitled to use the titles DSI Financial Analyst or DSI Register IV-A; Senior Financial Analyst: a holder of this position may be registered in the Register of Senior Financial Analysts; a person who is entered in this Register is entitled to use the titles DSI Senior Financial Analyst or DSI Register IV-B. Article 4: General criteria for registration 4.1 Candidates who hold one or more of the positions referred to in Article 3 and fulfil the conditions laid down in the following articles are eligible for registration in one of the Registers of DSI. 4.2 Candidates and Registered Practitioners must fulfil the minimum criteria regarding qualifications and experience, as well as integrity, as established by DSI and altered from time to time. These criteria are included in Annex I. Qualifications or, as the case may be, experience gained abroad by a Candidate or Registered Practitioner may also be taken into account for the purposes of the criteria laid down in Annex I 4.3.1 Candidates and Registered Practitioners must be in the employ of a Participant or in any event be subject to the authority of a Participant and be actively engaged in the Sector. 4.3.2 A Registered Practitioner can, if he fulfils the other criteria for registration, remain registered as non-active if he i) is no longer in the employ of a Participant, ii) works for a Participant for less than 50% of the time in the area of the register in which he is recorded or iii) works abroad. If this non-active period (commencing at the time the Registered Practitioner has no longer gained any experience (or less than 50%) in the area of the register in which he is recorded has lasted more than two years, he must first gain six months experience (working at least 50% of the time) in the area of his registration before he can reactivate his registration. 4.4.1 Candidates and Registered Practitioners must submit to the registration procedure of DSI and also to the Constitution and Regulations of DSI. 4.4.2 If a Registered Practitioner changes employers, in order to be able to continue his registration he must submit to DSI an unqualified reference from his former employer ( ex-employer s reference ) in accordance with the model provided by DSI. During the period that such reference has not been submitted, and in the event that the Participant issues an updated employer s reference within the meaning of Article 5.2 (5th dash) of the Participation Rules, registration will be suspended until i) the reference has been obtained, ii) it is evident that DSI finds no grounds to terminate registration or to take one of the measures referred to in Articles 9, 10 or 13 of the General Regulations, or iii) a final decision has been reached with respect to termination of the registration or one of the measures referred to in Articles 9, 10 or 13 of the General Regulations. 7
4.5. Registered Practitioners must comply with the criteria as regards continuing education. 4.6 The Board may impose further conditions concerning registration in one or more Registers of DSI. 4.7 The Board may, at the request of a Candidate, grant dispensation from one or more registration criteria where there are good grounds for this. Before taking a decision, the Board shall hear the Candidate. Article 5: Admission procedure 5.1 A person wishing to be registered in one of the Registers of DSI shall submit a written application to DSI for this purpose. 5.2 The application for registration shall be made on a model registration form adopted by DSI, in which the applicant indicates that he submits to the admission procedure of DSI and to the Constitution and Regulations of DSI, including the Code of Conduct, and the procedure and rulings of the Disputes Committee, the Disciplinary Committee and the Appeals Committee. 5.2.1 The applicant shall indicate on the registration form the position(s) for which entry in the Registers is requested, specify the qualifications obtained and courses followed and describe the work which the applicant has performed in the Sector to date, and give his address and particulars of the Participant. 5.2.2 By signing the registration form the applicant gives consent for publication of the particulars and information concerning him recorded in the Registers. 5.2.3 In making the application the applicant shall submit the documents referred to on the registration form. In addition, the applicant shall provide DSI at its request with further information. 5.3 The costs of the application for registration shall be paid when the application is submitted to DSI. DSI will determine the amount of these costs from time to time. 5.4 DSI will consider an application for registration only if the registration form has been fully and correctly completed and signed and the registration fees have been paid. 5.5 DSI will examine whether the Candidate fulfils all the criteria for registration and decide on his entry in one or more Registers. 5.6 DSI will inform the Candidate in writing, at the address given by the Candidate on his registration form, of its decision on the application for registration. The applicant may appeal against a refusal to enter him in one of the Registers of DSI to the Disputes Committee within a month of the date of the decision. 5.7 DSI will also inform the Participant in writing of a refusal of an application for entry in one or more Registers. 5.8 The rights and obligations which registration in one or more Registers at DSI entails are entirely personal and are not assignable. 8
5.9 If a Registered Practitioner changes jobs or employers, he must submit to DSI an alteration form as adopted by DSI from time to time. The provisions of Article 4 shall apply mutatis mutandis. 5.10 The Candidate or Registered Practitioner is obliged to inform DSI in writing of any change in the particulars and information provided with the application for registration and of facts and circumstances concerning the Candidate or Registered Practitioner which are relevant for registration and the rights and obligations resulting therefrom. 5.11 DSI is authorised to obtain information from Euronext relating to the monitoring which Euronext carries out regarding compliance with its rules by persons who carry out duties as referred to in Euronext s regulations, if and in so far as this information could be relevant to DSI with a view to the fulfilment of the objects in its constitution and tasks laid down by the regulations vis-à-vis Registered Practitioners. Article 6: Termination of registration 6.1 The rights of a Registered Practitioner shall end by 12 weeks notice of termination sent by a Registered Practitioner to DSI by registered letter. 6.2 The rights of a Registered Practitioner end by notice of termination if a decision to this effect is taken by DSI in, inter alia, the following cases: 6.2.1 if a Registered Practitioner has ceased to comply with the criteria for registration set by the Constitution and Regulations of DSI or with the conditions set for him on the occasion of his registration or during the term of the registration, or fails to fulfil his obligations to DSI or fails to do so in full or infringes any provision of the Constitution or Regulations of DSI; 6.2.2 if the particulars, information or documents that have been provided with an application for registration prove to be so incorrect or incomplete that a different decision on the application for registration would have been taken if the correct and complete particulars, information or documents had been provided at the time of assessment of the application; 6.2.3 if circumstances occur or facts become known on the basis of which the application for registration would have been refused if they had occurred or been known before the date on which registration was granted; 6.2.4 if DSI cannot reasonably be expected to allow the registration of a Registered Practitioner to continue; 6.2.5 if a Registered Practitioner has, in the opinion of DSI, ceased to make payments; 6.2.6 termination as a result of a decision as referred to in this paragraph may occur with effect from any day, subject to a period of notice that is reasonable in the circumstances, and shall be notified, together with the reasons, to a Registered Practitioner by registered letter. The letter shall mention the possibility of appeal as referred to in paragraph 4. 6.3 The provisions of this Article shall be without prejudice to the rights of DSI to take the measures referred to in Articles 9 and 10 of these General Regulations. 6.4 A Registered Practitioner shall have a right of appeal to the Disputes Committee for 15 days from the date of the termination as referred to in paragraph 2 of this Article as notified to the address of the Registered Practitioner. 6.5 DSI may publicise the termination of the rights of a Registered Practitioner. In the event of termination by DSI as referred to in paragraph 2 of this Article, DSI can publicise the termination of the rights of a Registered Practitioner and record it in the Register together 9
with the reason for termination, after the period for appeal referred to in paragraph 4 of this Article has expired or after the appeal has been dismissed. Article 7: Code of Conduct 7.1 General responsibilities 7.1.1 A Registered Practitioner acts on the basis of probity, expertise and dignity in his dealings with the investing public, clients, potential clients, employers, employees and other registered practitioners. 7.1.2 A Registered Practitioner shall at all times act in such a professional and honourable way as to do justice to the good name and aims of DSI. 7.1.3 A Registered Practitioner shall maintain and improve his knowledge and expertise. Where a Registered Practitioner provides supervision or leadership, he shall, where possible, ensure that his subordinates act in accordance with the Code of Conduct and that they maintain and improve their knowledge and expertise. 7.1.4 A Registered Practitioner shall keep himself informed about and comply with the laws, regulations and guidelines which have been introduced by the competent authorities and are applicable to his professional group. 7.1.5 A Registered Practitioner shall not cooperate in acts or transactions which are contrary to or conflict with the laws, regulations and guidelines referred to in 7.1.4 above. 7.2 Responsibilities with regard to the investing public and the securities markets 7.2.1 A Registered Practitioner shall contribute, through his probity in market matters, to confidence in the satisfactory functioning of the securities markets, the effective operation thereof and the proper protection of the interests of the investing public, even if this means that he forgoes particular direct financial benefits in certain cases. 7.2.2 A Registered Practitioner has the duty to maintain the confidence of investors in the probity of the securities markets by trading in an honest manner and always observing the professional ethics. A Registered Practitioner shall in particular refuse to cooperate with those who seek to deviate from the principles of probity in market behaviour and must not engage in acts which could frustrate or jeopardise the normal operation of the Securities Markets. 7.2.3 A Registered Practitioner may not manipulate the Securities Markets, either by means of one more transactions or by disseminating or promoting rumours, disclosing pricesensitive information not in the public domain or otherwise. 7.2.4 Information about the investment result achieved by a Registered Practitioner or Participant shall always be correct, accurate and complete. The information should preferably be provided in accordance with the existing standards such as those of the Society of Financial Analysts (VBA-PPS 1998) and the Global Investment Performance Standards. 7.3 Responsibilities with regard to clients and potential clients 7.3.1 A Registered Practitioner shall ensure that in his relationship with the client he puts the interests of the client first and observes due care in his dealings with the client. 10
7.3.2 A Registered Practitioner shall make a careful study of the financial position of the client before giving investment advice or taking investment decisions on behalf of his client in the context of fund management. In his investment advice and decisions he shall take account of the investment experience and aims of his client. 7.3.3 A Registered Practitioner shall formulate a professional opinion in a careful and properly considered manner when providing investment advice or taking an investment decision. 7.3.4 A Registered Practitioner shall provide balanced and soundly motivated investment advice based on facts of material importance. A Registered Practitioner shall, in order to avoid possible misrepresentation, always inform his client of important facts or circumstances which are contrary to his advice. 7.3.5 A Registered Practitioner shall avoid any conflict between his own interests and those of his clients and shall strictly observe any code has been drawn up by his employer for the avoidance of conflict between business and private interests. 7.3.6 A Registered Practitioner shall treat carefully and confidentially information supplied to him by the client. A Registered Practitioner may deviate from this where required to do so by the law, a judicial judgment or a ruling of a competent disciplinary board, and if there is a dispute between a Registered Practitioner and the client before a judicial or disciplinary body. Article 8: Enforcement and Provision of Information 8.1 DSI may, in enforcing observance of its rules and in the context of instituting or conducting proceedings before the Complaints Committee, the Disputes Committee, the Disciplinary Committee and the Appeals Committee, obtain particulars and information from Candidates, Registered Practitioners or Participants. 8.2 Registered Practitioners and Participants are obliged to provide the particulars and information required by DSI within the period specified by DSI for this purpose. 8.3 DSI may, in exercising its powers as referred to in this Article, arranged to be assisted by experts. 8.4 In appropriate cases DSI may submit a dispute to the Disputes Committee, refer an infringement of the Constitution or the Regulations of DSI to the Disciplinary Committee and, on appeal, refer rulings of the Disputes Committee and the Complaints Committee to the Appeals Committee. 11
Article 9: Suspension measures 9.1 The Managing Director may suspend a Registered Practitioner if he finds or suspects that a Registered Practitioner is infringing or failing to observe any provision of the Constitution or Regulations of DSI or is failing to observe them fully. Such a suspension shall last for a maximum of six months, save where disciplinary proceedings are pending. 9.2 If the Managing Director institutes disciplinary proceedings during the term of the suspension, the suspension shall remain in force until either DSI terminates the suspension or the suspension is terminated by judgment of the Disciplinary Committee, the Disputes Committee or the Appeals Committee. 9.3 DSI shall immediately notify a Registered Practitioner of the suspension, giving reasons. If the notification is given orally it shall be confirmed as quickly as possible by registered letter. 9.4 A written notice to a Registered Practitioner shall contain in any event: 9.4.1 the facts and circumstances on the basis of which DSI bases its finding or suspicion; 9.4.2 the relevant provisions of the Constitution or rules or regulations; 9.4.3 whether the DSI intends to institute proceedings before the Disciplinary Committee; 9.4.4 if applicable, the period within which DSI will institute proceedings; 9.4.5 whether the suspension will be made known to the Participant or the public; 9.4.6 whether a Registered Practitioner is barred from making use of his DSI registration; 9.4.7 whether a Registered Practitioner is denied access to DSI s premises; 9.4.8 the statement that a Registered Practitioner has a right of appeal to the Disputes Committee against the suspension measure. 9.5 DSI shall record a suspension in the Register. 9.6 During the suspension DSI may prohibit a Registered Practitioner from exercising his registration rights. 9.7 If DSI intends to institute proceedings before the Disciplinary Committee, it shall inform a Registered Practitioner of this in a notification as referred to in paragraph 3 of this article. 9.8 A suspended Registered Practitioner may be denied the use of DSI facilities and access to DSI premises. 9.9 A person who has been suspended shall have a right of appeal against the suspension to the Disputes Committee for eight days after the date of the registered letter referred to in paragraph 4 of this Article. The institution of an appeal shall not stay the effect of the suspension. 9.10 DSI may also conditionally suspend a Registered Practitioner. If the conditions set by DSI are not met by a Registered Practitioner within a period prescribed by DSI, the suspension shall take effect. The provisions of paragraphs 1 to 11 shall apply mutatis mutandis. 12
9.11 Suspension for a determinate period shall end in any event by termination or by expiry of the period concerned. If the suspension has been notified not only to the participating employer but also to third parties, DSI shall give notice of the termination to the third parties as well. Article 10: Disciplinary measures 10.1 Without prejudice to the power referred to in Article 13, DSI may impose penalties on Registered Practitioners in the event of an infringement or failure to perform any provision of the Constitution or Regulations of DSI or a failure to perform a provision in full. 10.2 DSI may exercise its power under the provisions of the first paragraph of this Article only if it has been provided in further regulations in what cases non-performance or infringement of the Constitution or Regulations of DSI or a failure to perform them in full may result in the imposition of a penalty and up to what amounts the penalties may be imposed. 10.3 If a Registered Practitioner does not give written notice of his acceptance of a penalty by way of settlement, DSI shall submit a complaint to the Disciplinary Committee in respect of the non-performance or infringement of any provision of the Constitution or Regulations of DSI. 10.4 If a penalty has been imposed by DSI on a Registered Practitioner on more than three occasions within a period of twelve months, DSI shall submit a complaint to the Disciplinary Committee against the Registered Practitioner. 10.5 DSI can publicise the imposition of fines and make an entry in the Register stating the reason for the imposition of the measure. Article 11: Disputes Committee 11.1 All disputes between DSI on the one hand and Candidates, Registered Practitioners or Participants on the other regarding registration and termination of registration or suspension measures as referred to in Article 9 shall be dealt with at first instance by the Disputes Committee in accordance with the Disputes Committee Rules. 11.2 For a month after the date of the decision of the Disputes Committee, the Candidates, Registered Practitioner, Participant or DSI shall have a right of appeal against the decision to the Appeals Committee in accordance with the Appeal Rules as referred to in Article 14. The decision of the Disputes Committee shall not be implemented during the appeal period or pending the appeal. 11.3 The decision of the Disputes Committee shall be implemented forthwith by DSI as soon as it becomes irrevocable. 11.4 DSI shall notify the Participant concerned in writing of each decision taken by the Disputes Committee with regard to a Candidate or Registered Practitioner. 11.5 DSI may publish every decision of the Disputes Committee without specifying the names. DSI may also publish the decision in abridged form. 13
Article 12: Complaints Committee 12.1 Any person who considers that his interests have been directly affected by an act or omission of a Participant in the course of the provision of a securities service may submit a complaint in writing to the Complaints Committee in accordance with the provisions of the Complaints Committee Rules. 12.2 Participants are subject to the Complaints Committee Rules. 12.3 For a month after the date of the decision of the Complaints Committee appeal shall lie against the decision to the Appeals Committee in accordance with the Appeal Rules referred to in Article 14. 12.4 The parties to a complaints procedure are not obliged to comply with a ruling of the Complaints Committee during the period of appeal as referred to in the previous paragraph or, if an appeal has been lodged in time, pending the appeal procedure. 12.5 DSI may publish any decision of the Complaints Committee without specifying the names. DSI may also publish the decision in abridged form. Article 13: Disciplinary Committee 13.1 A person having a direct interest may submit a complaint in writing to DSI if a Registered Practitioner does not comply with the Constitution or Regulations of DSI or fails to observe or infringes the Constitution or Regulations of DSI. 13.2 A complaint must be clearly reasoned and contain the name of the Registered Practitioner. 13.3 The Managing Director shall institute an investigation into each complaint that is submitted in writing and is clearly reasoned. The Registered Practitioner and Participant concerned shall be notified in writing of the investigation. 13.4 DSI shall confirm to the complainant in writing that the complaint has been received. The confirmation shall state that an investigation as referred to in the previous paragraph has been instituted, unless the complaint is not clearly reasoned. The confirmation shall also specify a period of not more than four weeks within which the Managing Director will inform the complainant whether the complaint will be referred to the Disciplinary Committee. The period referred to in this paragraph may be extended by not more than eight weeks. 13.5 The Managing Director shall decide whether or not the complaint should be referred to the Disciplinary Committee. The complainant may, within 14 days of the date of a decision of the Managing Director not to refer a complaint to the Disciplinary Committee, request the Board in writing for a review of the decision. 13.6 The Board shall deal with a request for review at its next meeting. The complainant shall be informed in writing of the decision of the Board. 13.7 If the Board overturns the decision of the Managing Director, DSI shall, after all, refer the complaint to the Disciplinary Committee within four weeks of the decision of the Board. 14
13.8 The Managing Director may also refer a complaint against a Registered Practitioner to the Disciplinary Committee independently after consultation with the Chairman, if he considers that there is reason to do so. 13.9 The Participant concerned shall be notified in writing of every complaint submitted by DSI to the Disciplinary Committee against a Registered Practitioner. 13.10 A complaint submitted by DSI to the Disciplinary Committee shall be decided by the Disciplinary Committee in accordance with the Disciplinary Rules. Registered Practitioners are subject to the Disciplinary Rules. 13.11 The Disciplinary Committee may, if it considers a complaint to be well-founded, impose one or more of the following measures in its ruling against the Registered Practitioner concerned: 1. reprimand; 2. an assignment in the form of training or a compulsory course; 3. suspension; 4. a fine of a maximum of 25,000 euros; 5. striking off the register; 6. publication of the measure and of the name of the Registered Practitioner concerned. 13.12 For a month after the date of the decision of the Disciplinary Committee appeal shall lie against the decision to the Appeals Committee in accordance with the Appeals Rules referred to in Article 14. The measure shall not be implemented by DSI during the appeal period or pending an appeal. 13.13 Where a complaint as referred to in this article is submitted in respect of an act committed during the registration period a Registered Practitioner may not evade the hearing of the complaint on the ground that his registration with DSI has ended. 13.14 The decision of the Disciplinary Committee shall be implemented forthwith by DSI as soon as it has become irrevocable. 13.15 DSI shall notify the Participant concerned in writing of each decision taken and each measure imposed by the Disciplinary Committee. 13.16 DSI may publish any decision of the Disciplinary Committee without specifying the names. DSI may also publish the decision in abridged form. 13.17 DSI will record in its Register a decision of the Disputes Committee in which a measure is imposed as referred to in paragraph 13.11 together with the reason for such measure after the period for appeal as referred to in paragraph 13.12 has expired or after the appeal has been dismissed. Article 13a: Arbitration Committee 13a.1 The Arbitration Committee is responsible for considering and deciding disputes of a professional or business nature concerning securities trading in accordance with the Arbitration Committee Rules. 13a.2 The disputes to be submitted concern inter alia disputes connected with or arising from the clearing and settlement of securities transactions in a Regulated Market as referred to 15
in the Rules, the admission of a Member as referred to in the Rules, suspension or termination of a Member s membership in a Regulated Market, the provision of information equipment or communications equipment or software by a Regulated Market or by a Member to a Member or to a third party. 13a.3 At least one of the two parties between whom the dispute exists is a Participant of DSI. Participants are subject to the Rules. 13a.4 The Arbitration Committee decides when requested to do so by both parties in the form of either an arbitral award or in the form of a binding opinion. 13a.5 The parties will transfer an amount to be decided by DSI as an advance on the costs of DSI and the Arbitration Committee into an account to be specified by DSI and will on first demand pay all the costs of DSI or the Arbitration Committee as determined by DSI. 13a.6 The parties may only appeal if they have expressly agreed in writing beforehand to do so. If so, an appeal can be made to the DSI Appeals Committee in accordance with the Appeal Rules for a month after the date of the Arbitration Committee s decision. 13a.7 The parties are not obliged to comply with an Arbitration Committee award during the one-month appeal period and, if the appeal has been lodged in time, pending the appeal procedure. 13a.8 DSI may publish decisions of the Arbitration Committee without specifying the names. DSI may also publish the decision in abridged form. Article 14: Appeals Committee 14.1 Decisions of the Disputes Committee as referred to in Article 11 of these General Regulations may be referred for review to the Appeals Committee in accordance with the Appeal Rules. 14.2 Decisions of the Complaints Committee as referred to in Article 12 of these General Regulations may be referred for review to the Appeals Committee in accordance with the Appeal Rules. 14.3 Rulings of the Disciplinary Committee as referred to in Article 13 of these General Regulations may be referred for review to the Appeals Committee in accordance with the Appeal Rules. 14.3a Awards of the Arbitration Committee as referred to in Article 13a of these General Regulations may be referred for review to the Appeals Committee in accordance with the Appeal Rules. 14.4 DSI shall notify the Participant concerned in writing of any appeal pending in relation to a Registered Practitioner. 14.5 DSI shall notify the Participant concerned in writing of any ruling given by the Appeals Committee in an appeal in disputes or in disciplinary proceedings relating to a Registered Practitioner. 14.6 DSI may publish any decision without specifying the names. DSI may also publish the decision in abridged form. 16
Article 15: Public nature of the register 15.1 DSI shall keep the following public Registers: in connection with the Participants, the Participants Register; and in connection with the Registered Practitioners, the Securities Trader Register, the Investment Adviser Register, the Fund Manager Register and the Financial Analyst Register. Separate Registers shall be kept for Registered Practitioners having senior status. 15.2 The Registers for Registered Practitioners referred to in the previous paragraph shall contain the names, addresses and job titles of the Registered Practitioners and the names, addresses and establishment data of the Participants, as well as the data and information whose inclusion in the Registers is considered desirable or necessary by DSI. 15.3 Each Registered Practitioner shall notify the DSI in writing forthwith of any changes in the information referred to in paragraph 2 with regard to him during the registration period. A Registered Practitioner shall be deemed to have chosen as his address for service the address given by him. 15.4 One of the purposes of the Registers referred to in paragraph 1 is intended to make available the information contained therein to the public. DSI shall supply a Registered Practitioner, on request, with an extract from the Register concerned, specifying the information with regard to a Registered Practitioner. DSI may refrain from providing certain information contained in its Registers to the public if it considers this necessary. 15.5 DSI shall draw up a list annually of the position on 1 January of the relevant year specifying the data referred to in paragraph 2 and shall publish this. DSI may refrain from publishing certain data and information contained in its Registers if it considers this necessary. DSI shall give notice of this in the list. 15.6 A Registered Practitioner shall receive, on request, a copy of the list referred to in paragraph 5. DSI shall be entitled to charge the costs incurred in this respect to the Registered Practitioner. Article 16: Notifications 16.1 Notifications by DSI to a Registered Practitioner shall be sent to the address of the Registered Practitioner as specified in one of the Registers referred to in Article 15. 16.2 A Registered Practitioner shall notify DSI in writing of any change of address. DSI shall not be liable for any detriment resulting from the fact that data of a Registered Practitioner are not included in one of the Registers of DSI or are not included correctly or in full. 17
Article 17: Costs 17.1 In addition to the costs referred to in Article 5, an annual contribution is payable by each Registered Practitioner to DSI for his registration. This contribution may vary according to the type of registration. 17.2 DSI may provide that only half the contribution referred to in the previous paragraph will be payable for the year concerned by a Registered Practitioner who is registered in the second half of a calendar year. Upon termination of the registration of a Registered Practitioner in the course of a calendar year the full contribution shall continue to be payable. 17.3 DSI may provide that each Registered Practitioner shall pay a once-only contribution for a change in the registration for whatever reason. 17.4 The amount of the contributions referred to in the previous paragraph shall be determined annually by DSI. Changes to the annual contributions shall be announced in writing. 17.5 DSI may charge fees for the use of facilities or for certain services. 17.6 In special cases DSI may charge a Registered Practitioner or Participant for the costs of investigating compliance with the Constitution and Regulations. Article 18: Alterations 18.1 Alterations or additions to these General Regulations and the rules and guidelines adopted pursuant to these General Regulations by the Board of DSI may be made at any time by the Board of DSI. A Registered Practitioner shall be bound by these alterations and additions. 18.2 The Board of DSI shall fix the date on which a alteration or addition to these General Regulations shall take effect and shall, if necessary, adopt transitional provisions. Article 19: Transitional arrangements 19.1 Candidates who meet the following conditions during a transitional period fixed by the Board shall, notwithstanding Article 4 and the provisions of Annex 1 to these General Regulations, be eligible for registration, without prejudice to the other provisions of these General Regulations. 19.2.1 A Securities Trader must in any event be registered as an Authorised Trader with Amsterdam Exchanges (AEX) or possess a relevant FSA/NASD registration or, depending on his qualifications, have at least five years recent and relevant job experience. A Senior Securities Trader without relevant qualifications will be eligible for registration if a certificate from his employer concerning his numeracy and skill in risk management in his own field of work, including derivatives, is submitted and he has at least ten years recent and relevant job experience. 19.2.2 An Investment Adviser must have at least a relevant higher vocational (HBO) qualification and a NIBE (Netherlands Institute for the Banking and Stockbroking Industry) 18
qualification and have at least two years recent and relevant job experience or, if he only has a NIBE qualification, at least five years recent and relevant job experience. A Senior Investment Adviser must have at least a NIBE qualification or a comparable internal qualification approved by DSI and at least 10 years recent and relevant job experience or, in the opinion of DSI, have completed a sufficient part of the requisite training courses referred to in 4 of Annex I and have at least 5 years recent and relevant job experience. If the Senior Investment Adviser has fulfilled only the experience criteria and not the qualification criteria, registration shall take place subject to reservation. The reservation shall lapse if one or more of the qualifications referred to in 4 of Annex I have been successfully obtained within a period specified by DSI. If the additional criteria are not fulfilled in time or not fulfilled successfully, registration will be terminated. 19.2.3 A Fund Manager must have at least a relevant higher vocational (HBO) qualification and a NIBE (Netherlands Institute for the Banking and Stockbroking Industry) qualification and shall have at least two years recent and relevant job experience. If the Fund Manager has only a NIBE qualification, at least five years recent experience and has not obtained a relevant preparatory qualification, he must have at least five years recent and relevant job experience. A Senior Fund Manager must have at least a relevant higher vocational (HBO) qualification and at least two years recent and relevant job experience. Without a relevant higher vocational (HBO) qualification, the Senior Fund Manager must have at least ten years recent and relevant job experience, provided that he has completed the NIBE (Netherlands Institute for the Banking and Stockbroking Industry) course or a comparable internal course approved by DSI. 19.2.4 A Financial Analyst must have at least a relevant higher vocational (HBO) qualification and at least two years recent and relevant job experience. Without a relevant preparatory qualification, the Financial Analyst must have at least five years recent and relevant job experience. A Senior Financial Analyst must have at least a relevant higher vocational (HBO) qualification and at least five years recent and relevant job experience. Without a relevant preparatory qualification, the Financial Analyst must have at least ten years recent and relevant job experience. 19.3 The Board may, at the request of a Candidate and after hearing him, grant a dispensation from one or more of the qualification and experience criteria referred to in this article. 19.4 All Registered Practitioners whose registration takes place pursuant to a transitional arrangement included in this Article are obliged within a period of three years from the end of the transitional period to complete the NIBE (Netherlands Institute for the Banking and Stockbroking Industry) course entitled DSI Probity Module and to attend an Ethics Workshop. 19
Annex I 1. The following minimum criteria apply to registration as a Registered Practitioner in one of the Registers of DSI: 1.1 Irrespective of the register in which a candidate wishes to be registered, an applicant must have completed the DSI Probity Module Course at the time of the application. The Ethics Workshop must be attended before 1 December in the year following that of registration. 1.2 Article 1.1 of this annex comes into force on 1 October 2002. A Securities Trader must have completed one of the following courses: NIBE-SVV: Securities Business and NIBE-SVV Professional Specialisation in Options and Futures Trading NIBE-SVV Securities Business and Euronext Trading Manager; European Option Academy Trading and Investment Course A Securities Trader must also have at least six months recent and relevant job experience. A relevant FSA or NASD registration provides exemption from the course requirements. See below for the accredited courses up to 1 January 2004. 1.3 A Senior Securities Trader must have completed one of the following courses: Amsterdam Institute of Finance: The Options Workshop and Exotic Options and Yield Curve Dynamics and Interest Rate Derivatives; Module 5 derivatives and module 6 operational aspects of the investment organisation, VBA (Association of Financial Analysts) (VU); Graduate course in econometrics or mathematics. In addition, he must have at least four years recent job experience in the securities and derivatives market or at least five years in one of these markets. See below for the accredited courses up to 1 January 2004. 1.4 An Investment Adviser must demonstrate that he has successfully completed one of the following courses: NIBE-SVV: Securities Business and NIBE-SVV: Investment Advice ; Rabo: BAP II including the Derivatives for Specialists and Investment Funds modules; European Option Academy: Trading & Investment course; a relevant university degree in economics including Finance and Investment. In addition, an Investment Adviser must have at least one year s recent and relevant job experience. A relevant FSA or NASD registration provides exemption from the criteria referred to above. See below for the accredited courses up to 1 January 2004. 1.5 A Senior Investment Adviser must have completed one of the following courses: NIBE-SVV Senior Investment Adviser course; VBA (VU) module 1 portfolio theory and asset allocation, module 5 derivatives, module 7 financial statement analysis and module 8 corporate valuation; CFA level I or other foreign equivalent; In addition a Senior Investment Adviser must have at least three years recent and relevant job experience. See below for the accredited courses up to 1 January 2004. 20