In an effort to raise conduct standards among mortgage brokers, the Financial Services Regulatory Authority of Ontario (FSRA) is proposing guidance on complying with a proposed national code of conduct for the sector.
The regulator published its proposed approach to incorporating a code of conduct that’s being jointly developed by the industry and the Mortgage Broker Regulators’ Council of Canada (MBRCC).
“The code promotes high standards of business conduct to protect consumers of mortgage brokering services,” FSRA said.
The MBRCC’s consultation closes Dec. 23.
In the meantime, FSRA is seeking feedback on its proposed approach to incorporating the code in its supervisory efforts.
The deadline for responses to FRSA’s proposed new guidance is Jan. 15, 2021.
Under the proposed new guidance, FSRA would consider adherence to the code as a factor in assessing suitability for licensing.
It would also consider failing to comply with the code as a material breach of the legislation governing mortgage brokers, which may lead to enforcement action.
FSRA intends to monitor compliance through comprehensive desk reviews, onsite examinations, along with targeted and thematic reviews on specific aspects of the code.
The proposed guidance is to take effect March 1, 2021, replacing its existing guidance in this area.