FSRA issues notice of proposal against Robert Brock Frost and Capitis Mortgage Investment Corp.

The Financial Services Regulatory Authority of Ontario, FSRA, has initiated enforcement action against Robert Brock Frost (Frost) and Capitis Mortgage Investment Corp. (Capitis).

FSRA alleges that Frost contravened the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act) by dealing in mortgages for remuneration outside of his registered mortgage brokerage contrary to subsection 2(3) of the Act.

FSRA alleges that Capitis contravened the Act and its regulations with respect to how it operated its mortgage administration business, including the misuse of its trust account and mishandling of mortgage funds contrary to sections 23(1), 35 and 37 of Ontario Regulation 189/08.

FSRA is proposing to refuse to renew the mortgage broker licence issued to Frost and refuse the surrender and revoke the mortgage administrator licence issued to Capitis. FSRA is also proposing to issue a compliance order against Frost and Capitis and an administrative penalty of $50,000 on Frost.

Frost and Capitis have requested a hearing before the Financial Services Tribunal about this proposal.

Learn more:

Access our enforcement database to see how FSRA is working to protect consumers through its monitoring and enforcement activities. 

For media inquiries:

Russ Courtney
Senior Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]