Will FSCO follow FICOM’s lead?

Will FSCO follow FICOM’s lead?

Will FSCO follow FICOM’s lead? Now that FICOM will soon require brokers to fully disclose commissions to clients, many wondered if other provinces would soon follow suit. We reached out to the Financial Services Commission of Ontario and asked.

FSCO said it would consider implementing similar disclosure requirements for brokers in Ontario.

“FSCO's legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates, including mortgage brokering,” Malon Edwards, a FSCO representative, wrote to MortgageBrokerNews.ca in an email. “In general, FSCO would implement regulations approved by the Ontario government that provide consumers, lenders, and investors with better protection and more information for their mortgage investments.”

When asked in a follow-up whether FSCO has any official plans to change disclosure requirements, Edwards said: “As stated, if the provincial government approved the regulations requiring this disclosure, we would implement them.”

FICOM announced last week it will require brokers to follow a new interpretation of regulation Form 10, which will require mortgage documents to explicitly state how much brokers are compensated.

FSCO said it is aware of FICOM’s disclosure plan and that it follows developments of the broker industry across Canada.

The regulator also clarified what is currently required of Ontario-based brokers when it comes to disclosing commissions.

“While mortgage brokers in Ontario are required to disclose to clients that they receive commissions or bonuses in connection with arranging mortgage transactions, they are not required to disclose the actual dollar amount,” Edwards said.
9 Comments
  • Dave 2016-04-05 9:05:45 AM
    How about the government starts getting banks to explain their penalties first? This is the question most clients ask , not how much a broker makes on their already low commission deal .

    This industry and its government is so paid off by the banks its hilarious.
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  • Barry Patchett 2016-04-05 9:10:12 AM
    2 quick comments....
    1) Whatever happened to the Privacy Act?
    and
    2) If you implement this for Mortgage Brokers being commissioned sales people are you going to implement this for any other commission sales persons working in Canada, regardless of industry?
    Cheers.
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  • George 2016-04-05 9:25:02 AM
    Very difficult considering we only know then initial commission from each lender but really don't know what bonus $ are until that level is reached nor whether an annual trailer fee survives the full term as borrower could break the mortgage early. There are too many variables to accurately state how many $ we receive in total. And then there are points and Mbucks etc!
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