Consultation on licence exemption guidance for mortgage transactions between sophisticated entities

Comments were provided by three stakeholders:

  1. Aimacon International Inc.
  2. Canadian Development Capital & Mortgage Services Inc.

Below is a summary of the comments received and FSRA’s responses.

Table 1: Stakeholder comments and FSRA’s responses

Summarized comments

FSRA response

  • Two respondents indicated they disagreed with the proposed licensing exemption


The 2019 Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) Review Report to the Minister of Finance recommended that the Ministry of Finance work with FSRA “to develop and propose amendments to the MBLAA that would reduce regulatory burden on commercial mortgage transactions between sophisticated entities such as large companies and financial institutions.”

To address this recommendation, the government has proposed a licensing exemption for Non-Individual Permitted Clients are based on specific feedback received during consultation for the 2018 MBLAA Review.

Mortgage transactions between Non-Individual Permitted Clients do not involve individual consumers. As such, risk of consumer harm is limited, reducing the need for FSRA to oversee such transactions; any potential harm or misconduct can be effectively managed by the Non-Individual Permitted Clients themselves.

This licensing exemption would enable FSRA to focus its resources on the conduct of licensees who provide mortgage agent and broker services to individual consumers.