New SRO announces settlement hearing to take place in the matter of Matthew Ewonus

TORONTO, March 17, 2023 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA"), now New Self-Regulatory Organization of Canada ("New SRO"), commenced a disciplinary proceeding in respect of Matthew James Ewonus (the "Respondent") by Notice of Hearing dated September 9, 2022 (the "Notice of Hearing").

As the result of a settlement agreement entered into between Staff of the New SRO and the Respondent, a settlement hearing will take place electronically by videoconference before a Hearing Panel of the New SRO's British Columbia District Hearing Committee on March 21, 2023, commencing at 10:00 a.m. (Pacific), or as soon thereafter as the matter can be held. Members of the public who would like to obtain further particulars should contact [email protected].

The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to Rules 7.3 and 7.4.1.1 of the Mutual Fund Dealer Rules. In particular, the settlement agreement concerns the allegations that the Respondent:

1. between March 23, 2020 and March 24, 2020, offered compensation to a client in response to a complaint without the prior written consent of the Member, contrary to the Member's policies and procedures, and MFDA Rules 1.1.2 (as it relates to Rule 2.5.1), 2.1.1, and 2.1.4,¹ and MFDA Policy No. 3 (now Mutual Fund Dealer Rules 1.1.2, 2.5.1, 2.1.1, 2.1.4 and 300);
2. between March 23, 2020 and March 24, 2020, provided a guarantee to a client of a specific result that she would receive from her investments, contrary to the Member's policies and procedures, and MFDA Rules 2.1.1, 2.1.4, 2.7.2, and 1.1.2 (as it relates to Rule 2.5.1) (now Mutual Fund Dealer Rules 2.1.1, 2.1.4, 2.7.2, 1.1.2, and 2.5.1); and
3. between March 30, 2020 and October 9, 2020, made false or misleading statements to the Member and MFDA Staff during the course of an investigation into his conduct, contrary to the Member's policies and procedures and MFDA Rule 2.1.1 (now Mutual Fund Dealer Rule 2.1.1).

Settlement hearings of the New SRO are typically held in the absence of the public pursuant to Mutual Fund Dealer Rule 7.3.5 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the settlement agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the settlement agreement will be made available at www.mfda.ca.

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 Kelowna, British Columbia area.

New Self-Regulatory Organization of Canada is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. New SRO is carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada, and is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians' trust in financial regulation and the people managing their investments. For more information, visit www.newselfregulatoryorganizationofcanada.ca.

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¹ On June 30, 2021, MFDA Rule 2.1.4 was amended to conform with client focused reform amendments to National Instrument 31-103 that came into effect on the same day. As the conduct addressed in this Settlement Agreement pre-dated the amendment to this Rule, all allegations set out in this Settlement Agreement that make reference to that Rule concern the version of the Rule that was in effect between February 27, 2006 and June 30, 2021.

SOURCE New Self-Regulatory Organization of Canada (New SRO)

Charles Toth, Vice-President, Enforcement, 416-943-4619, [email protected]; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, [email protected]