File No. 201675
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: Branislav Robert Djekic
- Staff of the Mutual Fund Dealers Association of Canada (“Staff”) and Branislav Robert Djekic (the “Respondent”), consent and agree to settlement of this matter by way of this agreement (the “Settlement Agreement”).
- Staff conducted an investigation of the Respondent’s activities which disclosed activity for which the Respondent could be penalized on the exercise of the discretion of the Hearing Panel pursuant to s. 24.1 of By-law No.1.
II. JOINT SETTLEMENT RECOMMENDATION
- Staff and the Respondent jointly recommend that the Hearing Panel accept the Settlement Agreement.
- The Respondent admits to the following violations of the By-laws, Rules or Policies of the MFDA:
- on November 20, 2014, the Respondent falsified one client’s signature on one account form, contrary to MFDA Rule 2.1.1; and
- on November 24, 2014, the Respondent misled the Member when he falsely represented to his branch manager that a client had signed an account form, when he knew this to be incorrect, contrary to MFDA Rule 2.1.1.
- Staff and the Respondent agree and consent to the following terms of settlement:
- the Respondent shall be prohibited for nine months from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA, pursuant to s. 24.1.1.(e) of MFDA By-law No. 1;
- the Respondent shall in the future comply with MFDA Rule 2.1.1; and
- the Respondent will attend by teleconference on the date set for the Settlement Hearing.
- Staff and the Respondent agree to the settlement on the basis of the facts set out in Part III herein and consent to the making of an Order in the form attached as Schedule “A”.
III. AGREED FACTS
- From August 8, 2003 to November 27, 2014, the Respondent was registered in Ontario as a mutual fund salesperson (now known as a dealing representative) with Royal Mutual Funds Inc. (“Royal Mutual”), a Member of the MFDA. On November 27, 2014, the Respondent was terminated as a result of the matter described herein.
- The Respondent is not currently registered in the securities industry.
- At all material times, the Respondent conducted business in the Windsor, Ontario area.
Falsification of Client’s Signature and Misleading the Member
- On November 13, 2014, the Respondent met with client CG in order to process a switch in client CG’s account. The Respondent provided Royal Mutual with completed trade forms for processing, and Royal Mutual processed the switch on November 14, 2014.
- On November 20, 2014, the Respondent’s branch manager met with the Respondent and advised him that he had failed to submit an Investor Profile Form in respect of the switch described above. The Respondent advised the branch manager that an Investor Profile Form had been completed and was signed by client CG on November 13, 2014. The Respondent and his branch manager were unable to locate the Investor Profile Form that the Respondent told the branch manager that client CG had previously signed.
- Approximately one hour after the conclusion of the meeting with his branch manager on November 20, 2014, the Respondent submitted to his branch manager an Investor Profile Form containing the signature purportedly of client CG.
- The Respondent falsified client CG’s signature on the Investor Profile Form prior to submitting it to his branch manager.
- The Respondent’s branch manager reviewed Royal Mutual’s electronic document management system, and determined that the Investor Profile Form had been generated in the approximate one hour period after the meeting between the Respondent and the branch manager on November 20, 2014, and not on November 13, 2014, as previously represented by the Respondent.
- The Respondent’s branch manager also observed that client CG’s signature on the Investor Profile Form did not match the signature that was on file with Royal Mutual for client CG.
- On November 24, 2014, the Respondent’s branch manager met with the Respondent to discuss her observations described above in paragraphs 14 and 15.
- During the November 24, 2014 meeting, the Respondent falsely claimed that client CG had returned to the branch to sign the Investor Profile Form.
- The Respondent states that he is impecunious and unable to pay any amount towards either a fine or costs.
- The Respondent has not previously been the subject of MFDA disciplinary proceedings.
- The signature falsification that the Respondent made on the Investor Profile Form did not alter client CG’s investment intentions and there was no client complaint.
- There is no evidence that the Respondent received any financial benefit from engaging in the misconduct described in this Settlement Agreement, beyond the commissions or fees that he would ordinarily be entitled to receive had the transaction been carried out in the proper manner.
- By entering into this Settlement Agreement, the Respondent has saved the MFDA the time, resources and expenses associated with conducting a full hearing of the allegations.
IV. ADDITIONAL TERMS OF SETTLEMENT
- This settlement is agreed upon in accordance with section 24.4 of MFDA By-law No. 1 and Rules 14 and 15 of the MFDA Rules of Procedure.
- The Settlement Agreement is subject to acceptance by the Hearing Panel which shall be sought at a hearing (the “Settlement Hearing”). At, or following the conclusion of, the Settlement Hearing, the Hearing Panel may either accept or reject the Settlement Agreement.
- The Settlement Agreement shall become effective and binding upon the Respondent and Staff as of the date of its acceptance by the Hearing Panel. Unless otherwise stated, any monetary penalties and costs imposed upon the Respondent are payable immediately, and any suspensions, revocations, prohibitions, conditions or other terms of the Settlement Agreement shall commence, upon the effective date of the Settlement Agreement.
- Staff and the Respondent agree that if this Settlement Agreement is accepted by the Hearing Panel:
- the Settlement Agreement will constitute the entirety of the evidence to be submitted respecting the Respondent in this matter;
- the Respondent waives any rights to a full hearing, a review hearing before the Board of Directors of the MFDA or any securities commission with jurisdiction in the matter under its enabling legislation, or a judicial review or appeal of the matter before any court of competent jurisdiction;
- Staff will not initiate any proceeding under the By-laws of the MFDA against the Respondent in respect of the facts and the contraventions described in this Settlement Agreement. Nothing in this Settlement Agreement precludes Staff from investigating or initiating proceedings in respect of any facts and contraventions that are not set out in this Settlement Agreement. Furthermore, nothing in this Settlement Agreement shall relieve the Respondent from fulfilling any continuing regulatory obligations;
- the Respondent shall be deemed to have been penalized by the Hearing Panel pursuant to s. 24.1.2 of By-law No. 1 for the purpose of giving notice to the public thereof in accordance with s. 24.5 of By-law No. 1; and
- neither Staff nor the Respondent will make any public statement inconsistent with this Settlement Agreement. Nothing in this section is intended to restrict the Respondent from making full answer and defence to any civil or other proceedings against the Respondent.
- If, for any reason, this Settlement Agreement is not accepted by the Hearing Panel, each of Staff and the Respondent will be entitled to any available proceedings, remedies and challenges, including proceeding to a disciplinary hearing pursuant to sections 20 and 24 of By-law No. 1, unaffected by the Settlement Agreement or the settlement negotiations.
- Staff and the Respondent agree that the terms of the Settlement Agreement, including the attached Schedule “A”, will be released to the public only if and when the Settlement Agreement is accepted by the Hearing Panel.
- The Settlement Agreement may be signed in one or more counterparts which together shall constitute a binding agreement. A facsimile copy of any signature shall be effective as an original signature.
 In order to generate an Investor Profile Form, a dealing representative at Royal Mutual must first electronically complete an Asset Allocation Report in relation to the relevant client.
DATED: Feb 12, 2017
Witness – Signature
Witness – Print Name
Branislav Robert Djekic
Staff of the MFDA
Per: Shaun Devlin
Member Regulation – Enforcement
File No. 201675
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: Branislav Robert Djekic
WHEREAS on September 19, 2016, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to ss. 20 and 24 of By-law No. 1 in respect of Branislav Robert Djekic (the “Respondent”);
AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated [date] (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:
- on November 20, 2014, falsified one client’s signature on one account form, contrary to MFDA Rule 2.1.1; and
- on November 24, 2014, misled the Member when he falsely represented to his branch manager that a client had signed an account form, when he knew this to be incorrect, contrary to MFDA Rule 2.1.1.
IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:
- The Respondent shall be prohibited for nine months from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA, pursuant to s. 24.1.1.(e) of MFDA By-law No. 1;
- The Respondent shall in the future comply with MFDA Rule 2.1.1; and
DATED this [day] day of [month], 20[ ].
[Name of Public Representative], Chair
[Name of Industry Representative]
[Name of Industry Representative]