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 wants to hear from
you
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.
Learn More
- Consultation on 'Enhancing Strong Conduct and Compliance
Culture: The Role of Mortgage Brokerages and Principal
Brokers'
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: ashley.legassic@fsrao.ca
SOURCE Financial Services Regulatory Authority of Ontario