Ontario mortgage brokers have new guidance on how to protect consumers’ interests.
The Financial Services Regulatory Authority of Ontario (FSRA) published its final guidance outlining how it will supervise compliance with the mortgage brokers’ code of conduct. The regulator consulted with industry starting last fall about incorporating the code of conduct into its supervisory efforts.
The guidance received support and didn’t require substantive changes, FSRA said, and it came into effect on Thursday.
“The code provides simple, clear guidance on how to conduct mortgage brokering activities that protect consumers’ interests,” FSRA said in a release. This includes reminding mortgage licensees to provide suitable products and services to clients in a transparent way.
The Mortgage Broker Regulators’ Council of Canada consulted with the industry and the public to develop the code.
FSRA said it will consider adherence to the code when assessing suitability for licensing. Failing to comply with the code may indicate a material breach of the legislation governing mortgage brokers and could lead to enforcement action.
Read the approach guidance here.