FSCO is vowing to crack down on brokerages not following the rules and in the coming months will start with the mandatory policy and procedures manual.
“We are getting tough on compliance, raising the fines and increasing our enforcement,” Anatol Monid, FSCO’s market regulation branch director, told brokers at last week’s IMBA
conference. “That goes for all relicensing, the education requirement and E&O.”
Every brokerage is required to have a policy and procedure manual, under the Mortgage Brokerages, Lenders and Administrators Act 2006 Ontario Regulation 188/08. This year FSCO will be actively ensuring compliance.
“FSCO will be conducting significant audits in 2013, and will review the operation of the brokerage to ensure compliance with the Act, including a review of their Policy and Procedures Manual,” Monid said Thursday. “Failure to comply with this requirement can result in penalties of up to $1,000.”
Monid shared the data from the most recent audits, including the compliance with the most recent relicensing requirement.
“Less than one per cent failed to comply with the relicensing requirement; a total of 22 licensees who failed to comply were issued letters of warning,” he said.
IMBA offers a Policy and Procedure manual to Principal Brokers of Ontario to assist them in compliance.
The MBLAA is being revisited this year for changes in the legislation, and the Independent Mortgage Brokers Association will be active during those discussions.
Part of the move to better standards and regulatory enforcement included the formation of the Mortgage Broker Regulators’ Council of Canada in October of last year. Monid praised the work of the MBRCC, as it has “raised the standard through the development of competency standards and curriculum requirements for mortgage brokers.”