TORONTO, April 25, 2019 /CNW/ - A settlement hearing in the matter of John Lucescu ("Respondent") was held today in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
The Hearing Panel approved the settlement agreement dated January 27, 2019 ("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 a supervisory position while in the employ of or associated with any Member of the MFDA for a period of 12 months;
- shall successfully complete the branch manager course offered by either the Canadian Securities Institute or the Investment Funds Institute of Canada prior to acting as a branch manager in the future;
- a fine in the amount of $6,250 ("Fine");
- costs in the amount of $2,500 ("Costs");
- payment of the Fine and Costs shall be made as follows:
- $2,500 (Costs) upon the acceptance of the Settlement Agreement;
- $520.83 (Fine) on or before May 31, 2019;
- $520.83 (Fine) on or before June 28, 2019;
- $520.83 (Fine) on or before July 31, 2019;
- $520.83 (Fine) on or before August 30, 2019;
- $520.83 (Fine) on or before September 30, 2019;
- $520.83 (Fine) on or before October 31, 2019;
- $520.83 (Fine) on or before November 29, 2019;
- $520.83 (Fine) on or before December 31, 2019;
- $520.83 (Fine) on or before January 31, 2020;
- $520.83 (Fine) on or before February 28, 2020;
- $520.83 (Fine) on or before March 31, 2020; and
- $520.83 (Fine) on or before April 30, 2020;
- 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 April 2010 and March 2016, he obtained, possessed, and used to process transactions, 42 pre-signed account forms in respect of eight clients, contrary to MFDA Rule 2.1.1; and
during April 2010, and between June 2014 and April 2016, he, acting in his capacity as branch manager, reviewed and approved the use of 36 pre-signed account forms, contrary to MFDA Rules 2.5.5(f) and 2.1.1.
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 carried on business in the Niagara Region and Whitby, Ontario 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 81,000 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.
1 Rule 2.5.5(f) has been re-numbered and reworded during the period of the Respondent's conduct described in the Settlement Agreement. Prior to December 2010, the Respondent's conduct was contrary to Rule 2.5.3(b).
SOURCE Mutual Fund Dealers Association of Canada
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]