Interpretation Guidance MB0052INT: Mortgage Administrators’ Financial Filing Requirements
Consultation posted May 16, 2023 – June 16, 2023

Comments were provided by the following stakeholders:

  1. Murray Snedden, MarshallZehr Group Inc
Topic Summary of Stakeholder Comments FSRA’s response


The stakeholder had no concerns with the requirements for administrators to: file financial statements and use licensed public accountants.

FSRA thanks the stakeholder for their comments and support.

Potential for increased stakeholder costs due to proposed expanded scope of audits

The stakeholder noted there may be increased costs for administrators due to:

  • the expanded scope of the audit and need for increased external and internal audit resources to provide the additional information and testing necessary to satisfy the new audit requirements
  • audit engagements may be viewed as "small/specialized audits" by auditors, potentially requiring "premium" costing
  • the filing deadline coincides with the busiest time of the year for auditors making qualified audit resources difficult to obtain (e.g., likely year end for most mortgage administrators as well as the personal tax year end)


Smaller administrators may be disproportionately impacted by these changes and in the long run may have to exit the market leaving mortgage administration in fewer, more professional hands.

FSRA recommends that administrators provide their auditors with ample time to prepare for the required audits to ensure the auditor’s availability.


The language of the Guidance is clear that the scope of the audit with respect to internal controls is limited to financial reporting (and not its enterprise-wide operations).


FSRA considers a reasonable assurance report issued for the fiscal year ending on or before December 31, 2024 to be “in a form approved by FSRA” if it provides the auditor’s reasonable assurance on the administrator’s compliance with ss. 33-39 of O. Reg. 189/08.


A transition period is being provided for reasonable assurance reports issued for the fiscal year ending after December 31, 2024. FSRA will consider these reports to be “in a form approved by FSRA” if it provides the auditor’s reasonable assurance on the administrator’s compliance with ss. 23, 24, 28, 29, 30, 31 and 32 of O. Reg. 189/08, as well as ss. 33-39 of O. Reg. 189/08.


Extending the financial reporting deadline beyond 90 days would require an amendment by the Government of Ontario to O. Reg. 193/08.


The monetary penalties per contravention read exceptionally punitive.


It would be valuable to ensure the concepts of balance, fairness and due process are explicitly incorporated in the language to inspire compliance vs pursue non-compliance.

The approach regarding the available enforcement sanctions is consistent for FSRA Guidance for the sector.


On March 27, 2023, FSRA released for consultation proposed interpretation and approach guidance on Administrative Monetary Penalties in all sectors, including the mortgage sector. That guidance aims to clarify how FSRA exercises discretion with respect to whether to impose an AMP and the amount. The consultation closed on May 31, 2023. FSRA is incorporating stakeholder feedback into the final version of the guidance.