“Fortress Capital lost millions in syndicated mortgage investments over the last seven years while FSCO turned a blind eye. The CRA, RCMP, Ontario Finance Ministry, IMF, affected investors and brokers launched 17 investigations against Fortress Capital.
In each instance, Anatol Monid, FSCO’s licensing and conduct chief, made the unilateral decision to call off the investigation. Monid’s job is to protect consumers, but he ignored well documented claims. FSCO cannot be effective as a regulatory body if its leadership refuses to act.”
Drew Charles Donaldson
“I cannot and will not say that FSCO is useless based on this one isolated incident. They have likely learned a lot from this unfortunate situation, and I have heard they are taking different steps to ensure people are protected moving forward.
For those criticizing FSCO, I recommend you provide them with some valuable feedback and ideas instead of the constant complaining. Our firm has always had a great relationship with FSCO, and as the industry innovates and evolves, so too will our regulators.”
“It’s abundantly clear that FSCO lacks the skills, knowledge and training to regulate the syndicated mortgage market. The changes to syndicated mortgage transactions that take effect on July 1 are a step in the right direction, but is it too little, too late?
Brokers promoting syndicated mortgages will be required to comply with expanded requirements, but there still needs to be regular and consistent monitoring to ensure the new requirements are being met. FSCO has clearly shown that they are not the vehicle capable of doing that.”