ID
2019-002

Type
Supervision
Sector
Mortgage Brokering Sector
Status
Open
Date
Comment Due Date

FSRA is committed to strengthening protection of investors in high-risk syndicated mortgages. Mortgage brokerages and mortgage administrators must provide adequate disclosure of the risks associated with syndicated mortgages in a way that is easily comprehensible to investors.

Provide your feedback

FSRA is now posting a proposed risk-based Supervision Approach for High-risk Syndicated Mortgages for public comment. The approach includes a new supplemental disclosure form 3.2.1. This supervision approach and new form are in line with FSRA’s priority to provide effective supervision of syndicated mortgages investments.

We are seeking your feedback on the proposed supervisory approach and the supplemental disclosure form:

  1. Does the supervision approach address the appropriate risks relating to syndicated mortgages for retail investors?
  2. Does the new supplemental disclosure form clearly highlight that these are risky investments? Is the language in the new disclosure form easy to understand?

Please provide your feedback on the Supervision Approach and disclosure form 3.2.1 by September 6, 2019 by clicking “Submit a comment or ask a question.”

This approach will be reconsidered if it is made redundant by the transfer of the regulation of high-risk syndicated mortgage transactions to the Ontario Securities Commission (OSC).

We will continue to focus on burden reduction, including other syndicated mortgage disclosure forms (link to forms 3.0, 3.1 and 3.2), to find opportunities to reduce regulatory burden on lower-risk syndicated mortgage transactions – we also welcome feedback on this opportunity so that we can make a proposal in this respect.

Please provide your feedback on forms 3.0, 3.1 and 3.2 by September 6, 2019 by clicking "Submit a comment or ask a question."

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