The Ontario Securities Commission (OSC) has refused to re-register a former mutual fund representative who was deemed not suitable for registration because of several compliance concerns.
Following a hearing, the OSC refused to reactivate the registration of John Olojz Kodric, former fund deal rep who worked with Manulife Securities Investment Services Inc. from 1998 to 2014. According to the decision, Kodric was dismissed from Manulife in September 2014.
“The notice of termination indicates that Kodric was dismissed in good standing from Manulife and that Kodric was subject to an open investigation by the Mutual Fund Dealers Association (MFDA) and client complaints,” the OSC decision says.
Although Kodric has not been the subject of any MFDA enforcement activity, OSC staff opposed his re-registration, citing several issues. These include: alleged trading outside his category of registration; failure to meet the suitability obligation by recommending a leveraging strategy to a couple of clients; and possession of pre-signed forms in client files.
Ultimately, the OSC decided to refuse to reactivate his registration, concluding that, “at this time, Kodric lacks the necessary proficiency and integrity to be registered and his registration is otherwise objectionable.”
The decision adds that “[OSC] staff clearly demonstrated that Kodric is unsuitable for registration because he lacks the necessary proficiency and integrity, because he did not act fairly, honestly and in good faith with his clients and because he did not comply with various provisions of Ontario securities law.”
However, this doesn’t amount to a permanent ban, the decision notes. Instead, the OSC says that Kodric “may be suitable for registration subject to terms and conditions,” including strict supervision by his sponsoring firm and prohibiting the use of leverage, if he reapplies in 12 months; demonstrates remorse; and takes courses to “better understand his obligations as a registrant.”