CMB MAGAZINE cmba-achc.ca winter 2016 | 21
Photo: AlexRaths/Getty Images
compliancecrunch
OVER THE PAST FIVE YEARS, the Financia�
Services Commission of Ontario (FSCO)
has examined 47 per cent of the licensed
brokerages in Ontario. Aer the compliance
reviews of those 571 brokerages, FSCO issued
83 AMPs (Applied Monetary Penalties)
ranging from $250 to $25,000. ey are the
licensing authority for the Ontario mortgage
brokering industry, and these on-site
examinations will continue. Even during the
holidays, brokerages were getting visits.
What they found are some things
brokerages are doing well, and some areas that
need to improve. FSCO released a report (see
link at the end of the article) summarizing
their examination findings in December
2015, and one of the biggest concerns is the
unacceptable decline in the level of compliance
regarding public relations materials and
disclosure requirements.
Are you disclosing your
licence number and legal
name?
When you advertise or distribute your PR
material, your brokerage licence number and
legal name must be disclosed. Other violations
included brokerages advertising false
information, or the address of the brokerage
not matching the information provided to
FSCO. Your contact information listed with
FSCO must be updated within five days of
any change, or else you can face serious
fines (AMPs).
Sampling of mortgage
transactions showed
poor documentation and
disclosure concerns
FSCO identified a number of deficiencies
when it conducted a random sampling of
transactions: lack of disclosure documentation
Failure to
Comply
Reviews from the Financial Services Commission of Ontario show
what brokerages are doing well and where they need to be better
BY SHERI-LYNNE LJUCOVIC
