Draft regulation - Principal Brokers

DRAFT REGULATION

principal brokers

Note: This is a draft regulation for discussion purposes. Bill 65, the Mortgage Brokerages, Lenders and Administrators Act, 2006, is not yet enacted.

Interpretation

Definition

1. In this Regulation,

“principal broker” means an individual designated by a brokerage as its principal broker under subsection 7 (6) of the Act;
“requirement established under the Act” means a requirement imposed by the Act or by a regulation, a condition of a licence, a requirement imposed by order or an obligation assumed by way of an undertaking. Duties re ensuring compliance

2. A principal broker shall,

  1. take reasonable steps to ensure that the brokerage, and each broker and agent authorized to deal or trade in mortgages on its behalf, complies with every requirement established under the Act; and

  2. ensure that the brokerage takes reasonable steps to deal with any contravention of a requirement established under the Act by the brokerage or by a broker and agent authorized to deal or trade in mortgages on its behalf.

Duties re brokerage's compliance policies and procedures

3. (1) A principal broker shall review the policies and procedures of the brokerage to determine whether they are reasonably designed to ensure,

  1. that the brokerage, and each broker and agent authorized to deal or trade in mortgages on its behalf, comply with every requirement established under the Act; and
  2. that each broker and agent authorized to deal or trade in mortgages on behalf of the brokerage is adequately supervised.

(2) A principal broker shall recommend to the brokerage that it make changes in its policies and procedures, if necessary, to ensure the matters described in clauses (1) (a) and (b).

Duties re certifying trust statement

4. A principal broker shall sign and date any trust account reconciliation statement prepared by the brokerage to indicate that he or she has reviewed it and certifies that it is accurate.

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