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IN THE MATTER OF THE MUTUAL FUND DEALER RULES

Re: Shawn Michael Obradovic Mollons

Order

WHEREAS on August 8, 2023, the Canadian Investment Regulatory Organization (“CIRO”) issued a Notice of Settlement Hearing pursuant to Mutual Fund Dealer Rule 7.4.4 in respect of a disciplinary proceeding against Shawn Michael Obradovic Mollons (the “Respondent”) that was scheduled to take place on September 11, 2023 before a hearing panel of the Manitoba District Hearing Committee of CIRO (the “Hearing Panel”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the CIRO (“Staff”), dated August 1, 2023 (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to Mutual Fund Dealer Rules 7.3 and 7.4.1;

AND WHEREAS Staff made a request to the Hearing Panel pursuant to Rule 2.2.(1)(a) of the Mutual Fund Dealer Rules of Procedure (the “ROP”) for the abridgement of the ten day notice period required by Rule 15.2 of the ROP in order to permit the Hearing Panel to proceed with the Settlement Hearing on September 11, 2023;

AND WHEREAS based upon the admissions of the Respondent in the Settlement Agreement, the Hearing Panel is of the opinion that:

Between August 30, 2021 and November 16, 2021, the Respondent signed the signatures or initials of five clients on six account forms and submitted them to the Dealer Member for processing, contrary to Mutual Fund Dealer Rule 2.1.1 (formerly MFDA Rule 2.1.1).

IT IS HEREBY ORDERED THAT the ten day notice period required by Rule 15.2 of the ROP is abridged in accordance with Rules 1.3, 1.5 and 2.2(1)(a) of the ROP and the Settlement Agreement is accepted, as a consequence of which:

  1. The Respondent is prohibited from conducting securities related business in any capacity while in the employ of or associated with any Dealer Member of CIRO that is registered as a mutual fund dealer for a period of two months commencing on the date of this Order, pursuant to Mutual Fund Dealer Rule 7.4.1.1(e);
  2. The Respondent shall pay costs in the amount of $2,500 in certified funds on the date of this Order, pursuant to Mutual Fund Dealer Rule 7.4.2;
  3. The Respondent shall pay a fine in the amount of $13,000 (the “Fine”), pursuant to Mutual Fund Dealer Rule 7.4.1.1(b) which shall be payable to CIRO in four monthly instalments in accordance with the following schedule:
    • $3,500 in certified funds on the date of this Order;
    • $3,500 on or before October 31, 2023;
    • $3,500 on or before November 30, 2023; and
    • $2,500 on or before; December 29, 2023.
  4. If the Respondent fails to make any of the payments described in paragraph 3 above when the payments become due, then the full outstanding balance of the Fine that the Respondent has not yet paid shall become immediately due and payable to CIRO;
  5. The Respondent shall in the future comply with Mutual Fund Dealer Rule 2.1.1; and
  6. If at any time a non-party to this proceeding, with the exception of the bodies set out in Mutual Fund Dealer Rule 6.3, requests production of or access to exhibits in this proceeding that contain personal information as defined by CIRO’s Privacy Policy, then the Corporate Secretary’s Office, Mutual Fund Dealer Division of CIRO 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 Mutual Fund Dealer Rules of Procedure.
  • Richard L. Yaffe, K.C.
    Richard L. Yaffe, K.C.
    Chair
  • Cathy Kelly
    Cathy Kelly
    Industry Representative
  • Adam Dudley
    Adam Dudley
    Industry Representative

On January 1, 2023, the Investment Industry Regulatory Organization of Canada (“IIROC”) and the Mutual Fund Dealers Association of Canada (the “MFDA”) were consolidated into a single self-regulatory organization recognized under applicable securities legislation. The New Self-Regulatory Organization of Canada (referred to herein as the “Corporation”) adopted interim rules that incorporate the pre-amalgamation regulatory requirements contained in the rules and policies of IIROC and the by-law, rules and policies of the MFDA (the “Interim Rules”). The Interim Rules include (i) the Investment Dealer and Partially Consolidated Rules, (ii) the UMIR and (iii) the Mutual Fund Dealer Rules. These rules are largely based on the rules of IIROC and certain by-laws, rules and policies of the MFDA that were in force immediately prior to amalgamation. Where the rules of IIROC and the by-laws, rules and policies of the MFDA that were in force immediately prior to amalgamation have been incorporated into the Interim Rules, Enforcement Staff have referenced the relevant section of the Interim Rules. Pursuant to Mutual Fund Dealer Rule 1A and s.14.6 of By-Law No.1 of the Corporation, contraventions of former MFDA regulatory requirements may be enforced by the Corporation.