October 30, 2018 (Toronto, Ontario) – A settlement hearing in the matter of Lubomir Chovancak (“Respondent”) took place today in Calgary, Alberta before a three-member Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel approved the settlement agreement dated August 21, 2018 (“Settlement Agreement”) between Staff of the MFDA and the Respondent, as a consequence of which the following sanctions were imposed on the Respondent:
- a prohibition 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;
- a fine in the amount of $8,000 (“Fine);
- costs in the amount of $2,500 (“Costs”);
- payment of the Fine and Costs 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 Rule 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 Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, 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.