Subject: LAW
MFDA Hearing Panel makes findings of misconduct and imposes sanctions against Ronald Kowalsky
TORONTO, Jan. 18, 2022 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Ronald John Thomas Kowalsky (the "Respondent") by Notice of Hearing dated September 20, 2021.
A disciplinary hearing in this proceeding was held electronically by videoconference today before a three-member Hearing Panel of the MFDA's Central Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts dated January 4, 2022 ("Agreed Statement of Facts"), in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which the Respondent could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:
a) | between 2013 and 2016, he engaged in securities related business that was not carried on for the account of the Member or conducted through its facilities by recommending and facilitating the sale of syndicated mortgage investments, contrary to the Member's policies and procedures and MFDA Rules 1.1.1, 2.1.1, 2.5.1, and 1.1.2; |
b) | between 2013 and 2016, he made referrals in respect of syndicated mortgage investments and received compensation for doing so, thereby participating in a referral arrangement to which the Member was not a party and which did not otherwise comply with sections 13.7 to 13.10 of National Instrument 31-103, the Member's policies and procedures, and MFDA Rules 2.4.2, 2.1.1, 2.5.1, and 1.1.2; |
c) | between August 28, 2015 and March 13, 2019, he obtained, possessed, and, in some instances, used 19 pre-signed account forms in respect of 11 clients, contrary to MFDA Rule 2.1.1; and |
d) | between January 16, 2019 and April 22, 2019, he attached a copy of signature pages from account forms previously signed by clients to 3 new account forms in respect of 3 clients, and submitted the account forms for processing, contrary to MFDA Rule 2.1.1. |
Following submissions from the parties with respect to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $40,000; and
- costs in the amount of $2,500.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Simcoe, 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 80,000 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.
SOURCE Mutual Fund Dealers Association of Canada
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