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

III. Consultation Draft Regulations

4) Administrative Penalties

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.

GENERAL ADMINISTRATIVE PENALTIES
(SECTION 39 OF THE ACT)

Exclusions from s. 39 penalties

1. An administrative penalty cannot be imposed under section 39 of the Act for a contravention of section 46 of the Act (Prohibition re reprisals).

Criteria for determining amount of penalty

2. The Superintendent shall consider the following criteria when determining the amount of an administrative penalty to impose on a person or entity under section 39 of the Act for a contravention or failure to comply with a requirement established under the Act:

  1. The degree to which the contravention or failure was intentional, reckless or negligent.
  2. The extent of the harm or potential harm to others resulting from the contravention or failure.
  3. The extent to which the person or entity tried to mitigate any loss or to take other remedial action.
  4. The extent to which the person or entity derived or reasonably might have expected to derive, directly or indirectly, any economic benefit from the contravention or failure.
  5. Such other indicators of the seriousness of the contravention or failure to comply as the Superintendent may consider appropriate in the circumstances.
  6. Any other contraventions or failures to comply with a requirement established under the Act or with any other financial services legislation of Ontario or of any other jurisdiction during the preceding five years by the person or entity.
  7. Such other criteria as the Superintendent may consider appropriate in the circumstances.
Deadline for paying s. 39 penalties

3. (1) A penalty imposed under section 39 of the Act must be paid no later than 30 days after the person or entity is given notice of the order imposing the penalty, unless the order specifies a later deadline.

(2) If a hearing on the notice of proposal to impose the order is requested in accordance with subsection 39 (5) of the Act, the penalty must be paid no later than 30 days after the matter is finally determined unless the order specifies a later deadline.

(3) If the order imposing the penalty specifies a later deadline, the penalty must be paid by the deadline specified in the order instead of the deadline described in subsection (1) or (2).

SUMMARY ADMINISTRATIVE PENALTIES
(SECTION 40 OF THE ACT)

Deadline for paying s. 40 penalties

4. (1) A penalty imposed under section 40 of the Act must be paid no later than 30 days after the person or entity is given notice of the order imposing the penalty.

(2) If the Superintendents order is appealed in accordance with subsection 40 (4) of the Act, the penalty must be paid no later than 30 days after the matter is finally determined unless the order as confirmed or varied on appeal specifies a later deadline.

(3) If the order as confirmed or varied on appeal specifies a later deadline, the penalty must be paid by the deadline specified in the order instead of the deadline described in subsection (1) or (2).

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