September 11, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) announced that it has issued a Notice of Settlement Hearing dated August 20, 2018 regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Prairie Regional Council.
The settlement agreement will be between Staff of the MFDA and Lubomir Chovancak (“Respondent”) and involves matters for which he may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The proposed settlement agreement concerns allegations that the Respondent:
- between November 2016 and January 2017, obtained, possessed, and in one instance, used to process a transaction, five pre-signed account forms in respect of three clients, contrary to MFDA Rule 2.1.1; and
- in November 2016, acting in his capacity as branch manager, reviewed and approved the use of one pre-signed account form, contrary to MFDA Rule 2.1.1 and 2.5.5(f).
The settlement hearing will take place on October 30, 2018, commencing at 9:30 a.m. (Mountain), or as soon thereafter as the matter can be held, in the hearing room at the offices of the MFDA, located at 800 – 6th Avenue S.W., Suite 850, Calgary, Alberta.
MFDA settlement hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.
A copy of the Notice of Settlement Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Settlement Hearing, the Respondents conducted business in the Lethbridge, Alberta area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 82,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.