rules and regulations

The Financial Services Regulatory Authority of Ontario (FSRA) has published final guidance for its supervision of mortgage brokerages that distribute syndicated mortgage investments.

The guidance comes as oversight of certain syndicated mortgage investments transfers to the Ontario Securities Commission on July 1, subject to certain approvals.

The transfer follows measures introduced last year to enhance investor protection for buyers of syndicated mortgages and to harmonize syndicated mortgage rules across Canada.

FSRA’s revised guidance was in response to feedback to improve regulatory efficiency, the Ontario regulator said in a release.

Brokerages dealing or trading in certain syndicated mortgage investments may now be exempt from licensing with FSRA if they’re registered with the OSC and their activities don’t require them to be licensed with FSRA. The class of investors, lenders or borrowers is also a factor.

The guidance will apply to transactions of syndicated mortgage investments that take place starting July 1.

For transactions that take place before that date, updated versions of previously issued guidance will apply.