Mortgage Brokerages, Lenders and Administrators Act, 2006 - Additional Draft Regulations for Consultation

III. Consultation Draft Regulations

12) Reporting Requirements For Licensees

under the

MORTGAGE BROKERAGES, LENDERS AND ADMINISTRATORS ACT, 2006

Note: This is a draft regulation for discussion purposes. The Mortgage Brokerages, Lenders and Administrators Act, 2006 is not in force.

PRESCRIBED REPORTING REQUIREMENTS

Requirement to submit information, etc.

1. The requirements set out in this Regulation are prescribed for the purposes of subsection 29 (1) of the Act.

ANNUAL FILINGS

Annual information return
2. On or before March 31 each year, each brokerage and each mortgage administrator shall give the Superintendent an annual information return for the previous year in a form approved by the Superintendent.
Financial information

3. (1) Within 90 days after the end of its fiscal year, each brokerage shall give the Superintendent,

  1. a statement, in a form approved by the Superintendent, that the brokerage was not required by the standards of practice to maintain a mortgage brokerage trust account at any time during the fiscal year; or
  2. a copy of its audited financial statements for the year and a copy of its annual reconciliation statement for the trust account for the year together with the auditors report described in subsection (4) about the trust account.

(2) Within 90 days after the end of its fiscal year, each mortgage administrator shall give the Superintendent a copy of its audited financial statements for the year and a copy of its annual reconciliation statement for the trust account for the year together with the auditors report described in subsection (4) about the trust account.

(3) The financial statements must be prepared in accordance with generally accepted accounting principles as set out in the Handbook of the Canadian Institute of Chartered Accountants and must be audited by a licensed public accountant.

(4) The auditors report about the trust account for a fiscal year must be prepared by the same person who audits the financial statements for the year and the report must indicate,

  1. whether the results of the auditors inspection of the books, records and accounts of the brokerage or mortgage administrator, as the case may be, and procedures applied in that regard, indicate that the brokerage or mortgage administrator maintained books, records and accounts as required under the Act; and
  2. whether the results of that inspection and those procedures disclose any differences between the monthly trust account reconciliation statements prepared by the brokerage or mortgage administrator, its records and accounts and the account records of the financial institution where the trust account was maintained.

INFORMATION ABOUT OTHER MATTERS

Establishment of trust account, brokerage

4. If a brokerage is required by the standards of practice to establish a mortgage brokerage trust account, the brokerage shall notify the Superintendent as soon as practicable and, in any event, no later than five days after the brokerage is required to establish the account.

REPORTING ABOUT CHANGES

Change of address for service

5. If a licensee changes the licensees mailing address in Ontario, the licensee shall give the Superintendent particulars of the new address no later than five days after the change occurs.

Change of other contact information

6. If a brokerage or mortgage administrator changes its email address, phone number or fax number, the brokerage or mortgage administrator shall give the Superintendent particulars of the new address or number no later than five days after the change occurs.

Change of principal place of business

7. If a brokerage or mortgage administrator changes the location of its principal place of business in Ontario, the brokerage or mortgage administrator shall notify the Superintendent no later than five days after the change occurs.

Change of offices open to the public

8. If a brokerage or mortgage administrator opens or closes an office in Ontario that is open to the public, the brokerage or mortgage administrator shall notify the Superintendent no later than five days after doing so.

Change of director, officer, partner

9. (1) If a licensee that is a corporation changes one or more of its directors or officers, the licensee shall notify the Superintendent no later than five days after the change occurs.

(2) If a licensee that is a partnership changes one or more of its partners, the licensee shall notify the Superintendent no later than five days after the change occurs.

Change of principal broker

10. If a brokerage changes its principal broker, the brokerage shall notify the Superintendent no later than five days after the change occurs.

Change of authority to act on behalf of brokerage

11. (1) If a mortgage broker or agent ceases to be authorized to deal or trade in mortgages on behalf of a brokerage, the brokerage shall notify the Superintendent no later than five days after the authority ceases.

(2) A mortgage broker or agent who ceases to be authorized to deal or trade in mortgages on behalf of a brokerage shall notify the Superintendent no later than five days after the authority ceases.

Change re insurance coverage, brokerage

12. If the errors and omissions insurance or other assurance maintained by a brokerage in accordance with the standards of practice is cancelled or is not renewed, the brokerage shall immediately notify the Superintendent.

ADMINISTRATIVE PENALTIES FOR NON-COMPLIANCE

Penalty amounts

13. (1) If a brokerage or mortgage administrator fails to comply with a requirement of this Regulation, the following summary administrative penalty may be imposed under section 40 of the Act:

  1. $1,000 for each failure to comply with section 2, subsection 3 (1) or (2) or section 4 or 12.
  2. $500 for each failure to comply with any other provision of this Regulation.

(2) If a broker or agent fails to comply with a requirement of this Regulation, a summary administrative penalty of $250 may be imposed under section 40 of the Act for each failure to comply with section 5 or subsection 11 (2).

REVOCATION

Revocation

15. Ontario Regulation 412/07 is revoked.

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