January 22, 2019 (Toronto, Ontario) – A Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision dated January 22, 2019 in connection with a settlement hearing held in Edmonton, Alberta on October 30, 2018 in the matter of Lubomir Chovancak (“Respondent”).
In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:
- is prohibited from acting as a branch manager or in any supervisory capacity for a Member of the MFDA for a period of six months;
- shall successfully complete the Branch Managers Course offered by the Canadian Securities Institute prior to holding the position of Branch Manager in the future;
- shall pay a fine in the amount of $8,000 (“Fine”);
- has paid costs in the amount of $2,500 (“Costs”);
- payment of the Fine shall be made as follows:
- $2,500 (Fine) and $2,500 (Costs) upon acceptance of the Settlement Agreement;
- $2,500 (Fine) on or before the last business day of the 3rd month following the date of the acceptance of the Settlement Agreement;
- $3,000 (Fine) on or before the last business day of the 6th month following the date of the acceptance of the Settlement Agreement; and
- shall in the future comply with MFDA Rules 2.1.1 and 2.5.5(f).
In the Settlement Agreement, the Respondent admitted that:
- between November 2016 and January 2017, he 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, he reviewed and approved the use of one pre-signed account form, contrary to MFDA Rule 2.1.1 and 2.5.5(f).
A copy of the Reasons for Decision is available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent 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.