Since early 2019, MPC has been advising and consulting the Ministry and the Financial Services Regulatory Authority of Ontario (FSRA) on its desire to transfer regulatory authority for some syndicated mortgages from FSRA to the Ontario Securities Commission (OSC). We are pleased that final decisions have been reached.
The Ontario Government has revised regulations under the Mortgage Brokerages, Lenders and Administrators Act (MBLAA). You may review the revisions to MBLAA, effective July 1, 2021, at their respective Government of Ontario E-Laws links. They will be highlighted in grey:
• O. Reg. 188/08
ONTARIO REGULATION 188/08 - MORTGAGE BROKERAGES: STANDARDS OF PRACTICE
• O. Reg. 407/07
ONTARIO REGULATION 407/07 - EXEMPTIONS FROM THE REQUIREMENTS TO BE LICENSED
Additionally, the OSC has published its final local amendments regarding syndicated mortgages. It issued this press release
outlining “the transfer of primary oversight of syndicated mortgages to the OSC, except for qualified syndicated mortgages and syndicated mortgages distributed to permitted clients,” which will remain with FSRA. FSRA will be posting updated Approach Guidance related to the implementation of these regulatory changes in the coming weeks, and we will share details when they are published.
As we expressed in consultations and in our written submission
to the Ministry September 17, 2020, MPC supports the Ministry, FSRA and the OSC in a collective desire to improve consumer protections while ensuring minimal regulatory burden “for transactions involving financially sophisticated entities that do not need the same protections as a retail investor”. We note that in discussions through 2019 a preference was stated by the Ministry to move all NQSMI oversight to the OSC; we are pleased that some NQSMI oversight will be retained by FSRA. MPC appreciates the balance regulators have sought to achieve through proposed changes to NQSMI regulatory oversight, changes which will more clearly delineate and distinguish the differences between sophisticated clients and retail clients.
We would also like to thank the ministry for agreeing to extend the implementation date one final time, from the originally proposed date of March 1 to the now formally published date of July 1, 2021. This accommodation is appreciated, especially in light of the disruptions we all continue to experience and adjust to, and the extension will provide those seeking additional licensing more adequate preparatory time.
Our sincere thanks to all at the Ministry of Finance, FSRA and the OSC who have devoted their time and energy to this important result.