Subject: SVY
Raising Professionalism in the Mortgage Brokering Sector
FSRA proposes practices that empower principal brokers to improve customer experiences
TORONTO, April 29, 2024 /CNW/ - To help ensure homebuyers and mortgage investors are treated fairly, Ontario's financial services regulator, FSRA, is proposing guidance to raise the overall professionalism of the mortgage brokering sector.
The guidance for mortgage brokerages and principal brokers sets out proposed practices to make principal brokers 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 to be 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 suitable brokers and agents.
"We are providing this guidance to make sure principal brokers are empowered to make decisions and influence agent and broker behaviours that lead to the fair treatment of consumers looking to get, renew or invest in a mortgage," said Huston Loke, Executive Vice President, Market Conduct, at FSRA. "Principal brokers play the crucial role of ensuring a mortgage brokerage operates effectively, ethically, and in compliance with all legal requirements."
FSRA's proposed guidance addresses concerns that some principal brokers 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% of principal brokers at brokerages with over 100 licensees had this authority.
FSRA is committed to making sure consumers and industry members understand this proposed guidance. That's why we're asking the public to join us live online for an overview of the publication and an interactive Q&A session on May 29, 2024. Register for the webinar now.
The consultation period is now open and will close on June 28, 2024. FSRA invites stakeholders to review the proposed guidance and submit their feedback.
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.
FOR MEDIA INQUIRIES:
Ashley Legassic
Acting Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 647-719-8426
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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