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FSRA Stakeholder Advisory Committee for Mortgage Brokering
Summary of the Meeting of November 25, 2020
Stakeholder Advisory Committee Members Present:
Daniel Andress – easyfinancial Services Inc.
Kevin Cohen – AUM Law Professional Corporation
Evan Cooperman – Foremost Financial
Wes Sudsbury – CMBA-Ontario
Mark Kerzner – TMG The Mortgage Group
Nick Kyprianou – RiverRock Mortgage Investment Corporation
Keith Lancastle – AIC
Harley Redlick – H. Redlick Consulting, Inc.
Susan Redmayne – First National Financial Corporation
Karim Talib – Lend At Ease, Inc.
Paul Taylor – Mortgage Professionals Canada
Edwin Weinstein – The Brondesbury Group
Joe White – Association of Mortgage Investment Professionals (AMIPROS)
Board Members Present:
Bryan Davies – Chair of the Board
Blair Cowper-Smith – Director
Joanne De Laurentiis – Director
Joseph Iannicelli – Director
Stewart Lyons – Director
Brigid Murphy – Director
Lawrence Ritchie – Director
Brent Zorgdrager – Director
Management Members Present:
Mark White – Chief Executive Officer
Huston Loke – Executive Vice President, Market Conduct
Glen Padassery – Executive Vice President, Policy & Chief Consumer Officer
Randy Nanek – Chief Financial Officer
Joel Gorlick – Director, Market Conduct Policy
Corporate Secretary’s Office:
Alena Thouin – Corporate Secretary and Deputy General Counsel
Margaret Kingerski – Assistant Corporate Secretary
The Chair of the Board called the meeting to order and provided introductory remarks. The members were advised that the FSRA Board of Directors had resolved to extend their term for an additional year.
Feedback on Draft F2021–2022 Priorities and Business Plan
The Committee provided feedback on the draft F2021-2022 Priorities and Business Plan, and inquired about the use of “regulatory effectiveness” in the plan. FSRA management defined the term and explained that it includes various initiatives such as enhancements to back office functions. The Committee acknowledged the funds allocated to enhancing the FSRA website and sought an update on the decommissioning of the FSCO website. FSRA management advised that these activities were delayed partly due to COVID-19 and a revised completion date is anticipated early in 2021.
The Committee requested a general update on the implementation of MBLAA (Mortgage Brokerages, Lenders and Administrators Act, 2006) Review recommendations. FSRA management advised that it is working with the Ministry of Finance to implement the recommendations.
The Committee recommended actions to deter bad actors in the sector and inquired about FSRA introducing a whistleblower program. FSRA management advised that it is considering a whistleblower program that would be applicable across all sectors.
The Board and the Committee discussed the transfer of oversight of certain non-qualified syndicated mortgage investments (NQSMIs) to the Ontario Securities Commission. The Committee was supportive of keeping oversight of sophisticated NQSMI arrangements with FSRA. The Committee examined the threshold to separate retail and accredited investors, and offered suggestions to help align Ontario’s approach with that of other jurisdictions.
The Committee questioned the implementation of a tiered approach to broker licensing, specifically which party would be responsible for determining the appropriate level of education for each tier. FSRA management advised that it will establish minimum educational requirements, which will likely be proportional to the potential for consumer harm.