16 | winter 2014 mbabc.ca MortgageBroker
Most importantly, without foregoing
protection, the public is spared the burden of
paying for a rule-oriented, regulatory authority.
Shortcomings of a principles-based
self-regulating structure
A broad rule makes it less certain in
determining when there has been compliance.
A practitioner knows in advance when a
detailed rule has been satisfied, but only finds
out aer the fact when a decision maker
determines his conduct did not meet a broad
standard. is shortcoming can of course be
leveled against much of the system of justice
employed in both criminal and civil law across
the common law world. Decision makers
determine cases before them by applying
legislation in accordance with precedent cases.
It is rare for the application or non-
application of a principle or standard to be
totally surprising. e few cases that truly fall
within the grey area are offset by the fact
prac titioners are not let off by technically
adhering to a detailed requirement, but not
meeting the spirit of the requirement. Whereas
principles and standards are generally inter-
preted in terms of avoiding underlying harms,
technical observance may be excused without
consideration of the underlying harm. e pub lic
is better served by decision makers applying
requirements in the spirit of avoiding harm.
Not an all-or-nothing exercise
In reality, principles-based self-regulating
structures are not an all-or-nothing exercise. A
model to be applied to the mortgage brokers in
British Columbia can be structured taking into
account our communities, our needs, and past
experiences. As with almost all legislation, any
legislation providing such a regime will forever
be a work in progress capable of adaption to
changes and arising needs. n
Appraisal Institude
1/3 sq
Armada Mortgage.indd 1 14-01-17 1:01 PM
p14-19_Principle_Self Regulation.indd 16 14-01-27 11:40 AM
