FSRA's final guidance sets out practices to raise professionalism in the mortgage brokering sector
TORONTO, Oct. 1, 2024 /CNW/ - Ontario's financial services regulator, FSRA, is taking action to help ensure fair outcomes for people getting or investing in a mortgage. Today, FSRA is releasing final guidance that sets out practices to help brokerages and principal brokers be more effective at carrying out their responsibilities, including:
- ways a brokerage can ensure its principal broker acts with integrity, demonstrates professional competence, and has the necessary independence, authority and resources to satisfy their regulatory responsibilities. Brokerages can adapt the proposed practices as appropriate for their size and operations.
- how principal brokers can demonstrate they are taking reasonable steps to ensure fair outcomes for consumers by effectively hiring, training and supervising brokers and agents to ensure their suitability for licensing and their due diligence when providing recommendations for clients.
The guidance addresses concerns that some principal brokers, particularly those who are not brokerage owners, are not as effective as they could be in influencing the strong conduct and compliance culture of their brokerages. A 2020 FSRA survey indicated that only 50 per cent of principal brokers at brokerages with over 100 licensees had this type of authority.
"Promoting a strong conduct and compliance culture within Ontario mortgage brokerages is a top priority for FSRA because it shapes how firms treat their clients and greatly impacts the client experience and outcomes," said Huston Loke, Executive Vice President, Market Conduct, at FSRA. "A brokerage's culture flows from the top down, and our Guidance sets out practices to make brokerages and principal brokers more effective at managing agent and broker behaviours that lead to positive consumer outcomes."
FSRA welcomed public feedback on the guidance between April 29 and June 28. FSRA did not receive any feedback that would affect the guidance and did not make updates to the final version.
Learn More
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.
Links
- Final Guidance: Mortgage Brokerage and Principal Broker Responsibilities to Ensure Compliance and Fair Consumer Outcomes
- Video and materials from FSRA's webinar on proposed guidance to help principal brokers become more effective at carrying out their duties
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Manager, Media Relations, Social Media and Issues Management
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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