Forum

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 21 Jun 2016, 08:15 AM Agree 0
An independent panel of experts is calling for syndicated mortgages to be regulated in the same manner as securities
  • Ron Butler | 21 Jun 2016, 02:17 PM Agree 0
    The time has come to move the sale of syndicated mortgages from FSCO and place the product under the auspices of the OSC.

    It is no longer appropriate that this type of capital creation vehicle be sold as a mortgage under FSCO rules. FSCO has done their best to try to craft disclosure and monitor the sales and marketing of the product but clearly it is time to suspend the sale of syndicated mortgages through FSCO until such time as the OSC can expand it's mandate to include these products.

    We need the higher level of consumer protection and disclosure on this file that only the OSC can provide and it is important to make this change right now, before hundreds of millions in additional transactions are processed.
  • David Franklin | 21 Jun 2016, 02:22 PM Agree 0
    This story was reported on in the Toronto Star
    https://www.thestar.com/business/2016/06/20/ontario-urged-to-boost-financial-protection-for-consumers.html
    FSCO failed to honour its mandate to protect the public interest in spite of having the legislation that enabled it to stop the improper sales of syndicated development mortgages.
    The question is why did FSCO not enforce the law.
  • David Franklin | 21 Jun 2016, 04:57 PM Agree 0
    I submit that the FSCO documents are "in English" and are easier to understand than a securities offering document. The problem is one of enforcement. If the new regulator hired competent staff and was proactive in learning what was being marketed, the public would be better served.
  • Keith Prosser | 07 Jul 2016, 02:17 PM Agree 0
    Completely agree with Ron Butler's comment on this topic
Post a reply