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File No. 201890

IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Lubomir Chovancak

Order

(ARISING FROM SETTLEMENT HEARING ON OCTOBER 30, 2018)

WHEREAS on August 20, 2018, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Lubomir Chovancak (the “Respondent”);

 

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated August 21, 2018 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that the Respondent:

  1. between November 2016 and January 2017, obtained, possessed, and in some instances, used to process transactions, 5 pre-signed account forms in respect of 3 clients, contrary to MFDA Rule 2.1.1; and
  2. in November 2016, acting in his capacity as branch manager, reviewed and approved the use of 1 pre-signed account form, contrary to MFDA Rule 2.1.1 and 2.5.5(f).

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:

  1. The Respondent shall pay a fine in the amount of $8,000 in certified funds pursuant to s. 24.1.1.(b) of MFDA By-law No. 1;
  1. The Respondent shall pay costs in the amount of $2,500 in certified funds pursuant to s. 24.2 of MFDA By-law No. 1;
  1. The Respondent shall be prohibited from acting as a branch manager or in any supervisory capacity for a Member of the MFDA for a period of 6 months commencing upon the date the Settlement Agreement is accepted by the Hearing Panel, pursuant to s. 24.1.1. of By Law No. 1;
  1. The Respondent shall be required to successfully complete the Branch Managers Course offered by the Canadian Securities Institute prior to holding the position of Branch Manager in the future;
  1. The payment of the fine and costs shall be made to and received by MFDA Staff as follows:
    1. $2,500 (fine) and $2,500 (costs) upon acceptance of the Settlement Agreement by the Hearing Panel;
    2. $2,500 (fine) on or before the last business day of the 3rd month following the date of the acceptance of the Settlement Agreement by the Hearing Panel; and
    3. $3,000 (fine) on or before the last business day of the 6th month following the date of the acceptance of the Settlement Agreement by the Hearing Panel;
  1. The Respondent shall in the future comply with MFDA Rule 2.1.1 and 2.5.5(f); and
  1. If at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.

DATED: Oct 30, 2018

"Shelley L. Miller"

Shelley L. Miller

Chair


"Greg Wiebe"

Greg Wiebe

Industry Representative


"Adam Dudley"

Adam Dudley

Industry Representative


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