FSRA takes steps to safeguard funds entrusted to mortgage administrators

The Financial Services Regulatory Authority of Ontario (FSRA) is taking action to ensure mortgage administrators are protecting the funds and investments they handle for investors and lenders.

Today, FSRA is issuing final guidance that explains how mortgage administrators must comply with financial reporting requirements.

The guidance aims to reduce the risk of funds and investments being misplaced, stolen, or otherwise treated improperly.

The guidance will help ensure:

• administrators file the required statements and auditor’s reports on time
• the auditor’s report is certified by a licensed public accountant
• the auditor’s Reasonable Assurance report on compliance with legislation is in a form approved by the CEO and addresses all the required areas of compliance

FSRA is releasing the Guidance, effective November 27, 2023, as part of its enhanced supervision of mortgage administrators, whose practices were identified as a key area of focus in FSRA’s 2023-24 Mortgage Brokering Sector Supervision Plan.

FSRA appreciates the feedback it has received during our consultation process. We have updated the final guidance to provide a transition period for reasonable assurance reports which will be issued for the fiscal year ending after December 31, 2024. For these reports to be in a form approved by FSRA, they will need to cover expanded requirements under O. Reg. 189/08.

Learn more:

• Final Guidance on Mortgage Administrators’ Financial Filing Requirements
• FSRA’s responses to March 2023 public consultation comments
• 2023-24 Mortgage Brokering Sector Supervision Plan

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.

Learn more at www.fsrao.ca.