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.
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.