FSCO and the Mutual Fund Dealers Association of Canada (MFDA) clarified their position on syndicated mortgages in a joint statement released Wednesday.
“In situations where an Approved Person is dually licensed, the MFDA requires compliance with the requirements of both regulators. In this case the regulators are the MFDA and the Financial Services Commission of Ontario (FSCO),” the joint release states. “The MFDA and FSCO are sending this joint communication to MFDA Members in Ontario to clarify our shared view.”
The bulletin was an expansion of a prior MFDA communication
that focuses, in large part on referral arrangements between mortgage brokers and MFDA member.
“MFDA Members that have approved persons who are also licensed as mortgage agents or mortgage brokers in Ontario and who are selling investments in syndicated mortgages through the member are required under the MBLAA to be licensed as Mortgage Brokerages by FSCO,” Wednesday’s release states. “Where a member does not wish to become licensed as a mortgage brokerage under the MBLAA, the member and its approved persons must cease offering syndicated mortgage investments.”
FSCO warns about unlicensed syndicated mortgages