TORONTO, May 12, 2020 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members during this time of rapid change and disruption.
FSRA is issuing new guidance to increase protection for consumers involved in mortgage-based investments during periods of market volatility and disruption, such as the current COVID-19 pandemic.
The Mortgage Brokerages, Lenders and Administrators Act, 2006 requires specific and timely communications to consumers with respect to changes to their investment values and mortgage terms. Mortgage administrators are required to advise their clients based upon new guidance.
Consumers looking to invest in syndicated mortgage investments (SMI) need to be informed about the impact of significant market disruptions on product risks and suitability. This is reflected in new guidance that is being issued to mortgage brokerages.