Mortgage Broker

updates&news CMB MAGAZINE cmba-achc.ca winter 2019 | 11 COALITION FOR SMALL BUSINESS TAX FAIRNESS MAKES PROGRESS CMBA has published several articles about its work with the Coalition for Small Business Tax Fairness over the course of the last year. In May of 2018, the Coalition wrote to all the provinces to ask them to reject the federal government's passive income approach for provincial corporate tax policy. We are pleased to report that the hard work of the Coalition paid off in some provinces. e incoming New Brunswick government included a commitment to abandon the passive income approach in its election platform, and the new government in Ontario recently announced that it will reverse the previous government's decision to adopt the federal approach and return to the old passive income rules. e Coalition is hopeful other provinces may follow suit, and this may eventually convince the federal government to reverse its passive income tax rules. FINANCIAL SERVICES REGULATORY AUTHORITY ROLLING OUT DETAILS FSRA has announced that it is on track for its Spring 2019 implementation, with a phased transition starting in April to facilitate a June launch. e agency has made some key appointments to its inaugural leadership team, who "are responsible for supporting innovation and growth in the regulated sectors, driving continuous improvement and efficiencies across FSRA, and championing a culture that is effective, forward- looking, collaborative, empowered and decisive." FSRA's dra 2019-20 Budget and Priorities will be open for comment until February 8, 2019. ONTARIO BROKER LEGISLATION TO BE REVIEWED e Ontario Ministry of Finance announced that it: "is seeking input from the public and other stakeholders with respect to a legislative review of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA). e review focuses on streamlining the MBLAA and reducing unnecessary regulatory burden and costs. e review may also afford those in the mortgage industry the opportunity to seek to exclude commercial loans from the application of the MBLAA." A concern of commercial mortgage lenders is that the MBLAA requires a broad variety of individuals and businesses in the mortgage industry to be licensed in Ontario, subject to only minimal exceptions. To the frustration of mortgage brokers, lenders and administrators that deal with only commercial borrowers, the MBLAA licensing requirements apply to them. When preparing their comments, mortgage participants may consider requesting an exclusion for commercial transactions. is would align with the consumer protection objectives of the MBLAA, as well as with the purpose of the review. e review is intended to be completed by spring 2019. Any comments must be provided no later than January 11, 2019. REAL ESTATE COUNCIL OF ALBERTA TO UNDERGO GOVERNANCE AND OPERATIONS REVIEW RECA, like many other mortgage broker regulators across the country, is undergoing a governance and operations review. RECA has announced that the minister will appoint a reviewer shortly and that the review will "better ensure RECA is a well-governed and trusted organization, and an effective regulator of the real estate industry." COMMITTEE REPORT ON MONEY LAUNDERING OMITS MORTGAGE INDUSTRY FROM RECOMMENDATIONS e Standing Committee on Finance recently released its report, Confronting Money Laundering and Terrorist Financing: Moving Canada Forward, where it makes 32 recommendations on proposed modifications and additions to the Canadian anti-money laundering (AML) regime. e Committee made the following observations in relation to the mortgage and real estate sectors: "Certain businesses and individuals in the real estate sector are subject to the PCMLTFA (Proceeds of Crime [Money Laundering] and Terrorist Financing Act), such as real estate brokers, sales representatives and developers. However, other businesses and individuals such as mortgage insurers, land registries and CMBA UPDATES & NEWS

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