FSRA’s webinar on the Use of Team Names in the Mortgage Brokering Sector (March 26, 2025)

0:05

Hello everyone and welcome to today's webinar, Fezra's webinar on the use of team names in the mortgage brokering sector.

0:15

Before we begin, I would like to go over a few items so you know how to participate in today's event.

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You have the opportunity to submit text questions to today's presenters by typing your questions into the questions pane of the control panel.

0:29

You may send in your questions at any time during the presentation.

0:33

We will collect these and address them during the Q &A session at the end of today's presentation.

0:39

I would now like to introduce Cheryl Zutu, Manager, Mortgage Brokering Conduct at FSRA.

0:48

Good morning, everyone. Thank you for attending today's Team Names Guidance Webinar.

0:52

My name is Cheryl Zutu, Senior Manager of Mortgage Brokering Conduct, and I'll be your host for today's meeting.

0:58

We will also have Gina Stevens, Director of Mortgage Broker in Conduct, and Jenny Hodgson, Senior Manager of Mortgage Broker in Conduct, who will be your presenters for today.

1:08

We hope you find this session informative.

1:12

Next.

1:13

Here's a look at what we'll be covering today.

1:15

We will have a moment for our land acknowledgement before Gina gives more context and detail about the principles-based approach.

1:22

She'll also give an overview of the proposed team name's guidance, and Jenny will provide illustrative visuals of compliant and non-compliant use of team names.

1:32

We'll also make sure we leave some time at the end for questions and answers.

1:37

Please enter your questions as they come to you so that we can address them during the Q &A period.

1:42

Please note the recording of today's webinar along with any questions we are not able to address will be posted to our website in the coming weeks.

1:53

Before we begin, it is important to acknowledge the land we are on is the traditional territory of many nations, including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa, the Hunit Shononi and the Wendat peoples, and is now home to many diverse First Nations, Inuit and Métis peoples.

2:12

We acknowledge that Toronto is covered by Treaty 13 with the Mississaugas of the Credit and the William Treaties signed with multiple Mississaugas and Chippewa bands.

2:22

I would now like to hand it over to Gina, who will take us through an update on the proposed Team Names Guidance.

2:29

Welcome, everyone.

2:30

Thank you for joining us for this webinar.

2:32

I'm so excited to see how many of you are interested in hearing more about this guidance.

2:39

Today, as Cheryl mentioned, I'll be walking you through FISRA's proposed guidance on the use of Team Names in advertising.

2:46

We are proposing this guidance in order to ensure that consumers can easily identify brokerage that is responsible for supervising the team, and to ensure that the use of team names in advertising is consistent throughout the sector.

3:00

Overall, this guidance is intended to support practices that obtain good outcomes for consumers and it aligns with our overarching principles-based approach.

3:09

I do want to emphasize that the guidance I'm discussing today is proposed, which means that FISRA is still in the consultation phase and these requirements and may change as a result of the feedback that we receive during the consultation period.

3:24

So this is all to say, please don't rush out today to create advertisements based on this approach.

3:31

FSRA will notify the industry when the final version of this guidance is available and in force.

3:36

Next slide, please.

3:41

You've likely heard the term principles-based regulation, or PBR for short.

3:46

What does that mean?

3:47

It means that in regulating the mortgage broker sector, FISRA focuses primarily on the high-level regulatory outcomes or objectives for licensees to meet, rather than prescribing many detailed rules that are one-size-fits-all.

4:02

This approach is particularly effective for the sector because it fits a wide variety of business models and businesses of different sizes and complexities, like the mortgage broker sector.

4:14

PBR supports innovation and accountability in the industry and aims to reduce regulatory burden while still making sure consumers are the priority and they're protected.

4:26

Next slide.

4:30

So how does the proposed guidance on team names align with FISRA's overall PBR approach?

4:37

It allows licensees to use team names to support their branding as long as they're not misleading to consumers or suggest that the team is its own brokerage.

4:47

This focus on outcomes balances the industry's desire to innovate and better reach their chosen client base with ensuring consumers are protected.

4:58

The use of team names requires that the principal broker authorize and monitor their use by licensees.

5:05

This is an approach that is risk-based and proportional to protect consumers from harm.

5:11

Our approach is also informed by consultations with the public and the industry to ensure that the resulting guidance is both practical for the sector and supportive of good outcomes for consumers.

5:24

Using a PBR approach enables FISRA to make sure that consumers are protected while ensuring the industry can innovate and remain competitive.

5:32

Next slide, please.

5:37

So now we're going to turn to a brief overview of the proposed guidance on team names.

5:42

Next slide.

5:46

So when we say team name, what exactly do we mean?

5:51

A team name refers to a name that is used in advertising that represents one or more individuals working together as a group within a mortgage brokerage.

6:01

Brokerages may authorize more than one team within their brokerage.

6:05

Though a team typically consists of mortgage agents and brokers, it may also include unlicensed individuals who support the team's brokers and agents with administrative tasks that do not require licensing.

6:23

Why is FISRA proposing this guidance?

6:26

We've heard from industry stakeholders that some consumers may prefer to work with familiar names or brands, and this may be especially true in markets where shared language and are important and where advertising may lead consumers to a mortgage professional who can best support that consumers financial decision-making.

6:46

At present there is also a lack of clarity surrounding the use of team names and the sector has been using team names inconsistently which increases the risk that this can cause confusion for consumers and potentially can cause consumer harm.

7:02

So FISRA is proposing guidance to be sure that if team names are used in advertising that a consumer is easily able to understand that the team works for a brokerage and the brokerage is the entity that has the ultimate accountability for the team's conduct and for the mortgage transaction itself.

7:22

Next slide.

7:26

What are the criteria that FISRA is proposing for the use of team names in advertising?

7:32

To determine if the use of team names in an advertisement is compliant with the EMBA, FISRAC considers a number of factors.

7:40

In the first instance, whether the team name is used alongside the brokerage's authorized name and license number and the licensee's name with their authorized title. As well, the team name doesn't appear to be or claim to be an independent licensed brokerage.

8:01

All mortgage documentation is to be completed using only the authorized name of the brokerage and signed using the licensee's name as required. Next slide.

8:16

When using team names in advertising, there also must be prominent disclosure.

8:21

And what I mean by that is that a consumer can clearly identify the authorized name and license number of the brokerage that oversees the team.

8:30

Disclosure is considered prominent if the authorized name and license number of the brokerage is not less prominent than the team name.

8:39

FSRA will not be going out there measuring fonts, but the average person should be able to see that the brokerage name is just as large as the team name and it's very prominently obvious to the average consumer.

8:55

Advertisements that list agents and brokers must also include their licensee names and the license types, so whether that person is a broker, Agent Level 1, or Agent Level 2.

9:13

For brokerages that decide to allow their agents and brokers to use team names, the principal broker plays a critical oversight role.

9:22

The principal broker should approve the use of team names by licensees of the brokerage, and they need to ensure that there is appropriate and ongoing oversight of their use by the agents and brokers of that brokerage.

9:35

FISRA recommends that if brokerages allow the use of team names, that they establish and implement policies and procedures for the brokerage's approval and monitoring process for their use in advertising. FISRA itself will not be registering or approving team names.

9:54

Whether a brokerage allows its licensees to use team names or not in advertising Advertising is a decision the brokerage and its principal broker must make.

10:04

A principal broker may choose to not allow the brokerage's licensees to use team names in advertising.

10:11

At this point in the presentation, I'm going to turn it over to Jenny Hodgson, who's going to walk us through some illustrative examples of what would be a non-compliant and compliant usage of team names under this proposed guidance.

10:26

Take it away, Jenny.

10:28

Thank you, Gina.

10:30

Hi, everyone.

10:31

It's a great pleasure to see so many people logged into this webinar today.

10:36

Sometimes when we're talking about something principles-based, it can help to have a visual example.

10:41

And so we've prepared a couple of examples for you here.

10:44

So if we can go to the next slide, please, thank you.

10:48

So what we have here is an advertisement on the left-hand side.

10:54

we've got a website and on the right, we've got a social media post.

10:58

I'll start with the website on the left here.

11:01

So the context that you're seeing here that you may not be able to tell from this website is that we have a mortgage brokerage and a team.

11:14

The team is named Poutine Mortgages.

11:17

You can tell it's a team partially by the text that's in the middle.

11:23

And they've indicated that they have team members and provided their titles.

11:28

So a few things on this advertisement. Let's take a look.

11:33

First and foremost, I can't tell from this advertisement, this website, this public relations material piece. I cannot tell who the ultimate authorizing brokerage is.

11:45

Poutine mortgages, where I do see a logo, which is what I as a consumer may land on it and assume is the brokerage doesn't have a license number.

11:54

That's a clue to me that it's not a licensed brokerage, but as an average consumer, I'm not necessarily going to pick up on that tiny little nuance.

12:03

So the first question when a person lands on a website is who am I dealing with?

12:10

You're dealing with the Putin mortgage team, but a team under who, who's got the authority?

12:16

So whose team is this?

12:18

And on the right-hand side, as we said, we see team member names, but that doesn't help me understand who's accountable.

12:24

So who is the team lead, for example, or ultimately, who does this team report into in terms of supervision, and then in terms of the team and reviewing the advertising and making sure that everything is compliant.

12:45

So on the left-hand side, you see that we've got confusion if you're an average person who's going to land on this website. Let's take a look at the right-hand side.

12:57

This is an example of an Instagram account, and so we have the lovely logo again there on the left for Putin mortgages.

13:07

But again, I don't see a license number, so I can't look this up in the public registry, as though it was a licensed mortgage brokerage.

13:16

I don't know who is accountable.

13:18

In this particular context in the social media, I don't have any names.

13:26

I've just got Poutine Mortgages.

13:28

I don't know who's behind it.

13:29

I don't know who's accountable.

13:30

I don't know who I can speak with.

13:32

And then I see Poutine Mortgages, Financial Service Poutine Mortgages, Professional Mortgage Brokerage.

13:38

Again, this confuses me.

13:41

it looks to me like it's its own brokerage and it looks like it's its own registered company.

13:46

However, if I were to go to the public registry, I would not find this company.

13:50

So I would be rather confused if I am a consumer.

13:55

Now, taking a look around, there's three key elements and they're the ones in the boxes.

14:00

So going back to the absolute marketing 101 basics, everything on the web, anything you are using as a public relations material, anything that's going to be in front of a consumer potentially or anything that's going to be used in the work of communication, solicitation of business, anything like that would be considered public relations materials.

14:27

And so what you always want to keep in mind is that any advertising, whatever the method, whatever the format, needs to have the licensed brokerage name and the licensed brokerage number.

14:43

If you are mentioning someone individual, you've got to have those basics as well.

14:48

I need to know as a consumer, if you mention Marie Poutine from the Poutine Mortgage Team, I do need to see that Marie Poutine, which should be the full licensed name, is an authorized title.

15:01

And the title that are authorized under the regulation and act are mortgage broker, broker, mortgage agent, agent.

15:11

And you would add your either level one or level two to that.

15:14

A French equivalent as written in the regulations or another language equivalent.

15:20

So this is what I'm missing here when I'm looking at these advertisements.

15:25

If I were to go to the next slide, we'll take these same advertisements and look at them one by one to see how they could be made more compliant, or I should say just compliant.

15:41

So starting off here, we've got the websites, the same website.

15:46

If I'm taking a look at this, I do see Poutine Mortgages and it has its nice logo on the side here and I see the same language, the Poutine Mortgage team works hard, but I can see very clearly and prominently that there is a licensed brokerage that I can verify who is accountable.

16:06

So it's clear to me when I land on this website that but I've got Poutine Mortgages, which is a team.

16:13

And I can infer with the fact that since just as prominently and clearly as the team, Poutine Mortgages, I can see the authorizing brokerage, ABC123 mortgage with the FISRA license number provided right there.

16:29

I see below, once again, at the very, very bottom, I see a mention of the license number.

16:37

And just above that, I see the team members.

16:39

And so what's highlighted there is that I've got a mortgage broker named Marie Poutine.

16:47

Now, you notice that the individual agent license number has been provided there.

16:52

That is optional. It is permitted.

16:54

You are not required under the Act to put your individual agent license number.

17:01

The five-digit license number of the brokerage is required.

17:04

your own is optional, and some brokerages actually do require their agents or brokers to advertise this way.

17:12

But what is absolutely required is the licensed name of the individual and their approved title, as shown here.

17:20

So with a few very simple little tweaks, this website went from being non-compliant to compliant, and the key defining factor is the fact that I now look at this, And I know that there is an actual authorized, licensed, verifiable brokerage that is accountable for all the actions of this team.

17:42

If we go to the next slide, we're looking at that social media section here, the profile for Poutine Mortgages.

17:53

And I would just like to highlight, just because it is a social media example, Every single message, post, X, anything that you're writing, you know, anytime you have those limited characters, it is not expected that you absolutely write all of those things into your teeny tiny little limited character set.

18:17

But it should be reasonable, recognisable and logical where I would find that.

18:24

So if I don't see it, let's say on, you know, because my characters are limited, I'm not going to see it right within the post, but if I click on the profile of that organization, it should be extremely clear to me when I land on that profile that I am working with a team.

18:42

And if it's a team, I need to understand who the authorizing brokerage is.

18:46

So, you see in this particular example, it clarifies by adding ABC123 under the Poutine Mortgage Team name, so an ABC123 Team, so it makes it very clear that it's a team and not a brokerage.

19:02

And you'll notice that further down, it is reiterated that Poutine Mortgage Team is authorized by ABC123 Mortgage Brokerage, which is the licensed name of the Accountable and Verifiable Brokerage.

19:21

And we have the license number again there.

19:24

There's no individuals who are named on this profile.

19:30

Additional information is not required.

19:32

So it's really a keep it simple approach.

19:37

What we want to make sure we can see is who is authorized, who is ultimately responsible, and who you're going to be working with.

19:47

So if we take a look at the next slide, this is a summary here of the key important points.

19:53

And I like to highlight that it's not about follow the rules because the rules exist.

20:01

That is in fact quite a bit different than what we mean when we say principles-based regulation.

20:08

The outcome we're looking for is not that you follow the rules.

20:12

The outcome that we're looking for is that consumers are treated fairly in all aspects of their transaction, including how they are solicited.

20:22

And to be treated fairly as a consumer means to have the appropriate information in order for you to make a decision.

20:30

And so if I need to make a decision about working with someone, I need to know who's accountable and who it really is.

20:36

So it's not just about following the rules.

20:40

Take a moment, and I would do this with any kind of regulation or rule that you see, but take a moment and think about why the rule exists and what it is that the rule is trying to achieve.

20:52

So the advertising rules in place have the key objective of being clear so that consumers can know that they're working with a licensed brokerage, that they know who is responsible for the team.

21:04

So in this case, the Poutine Mortgages team.

21:07

We wanna be able to see who we're putting our trust in.

21:12

And because it's an authorizing brokerage, want to know who can be contacted if something goes wrong.

21:18

So these are the key elements as to why advertising is looked at with a critical lens.

21:27

But that critical lens comes from a place of reasonability and logic.

21:32

I do get asked oftentimes at events If there's a standard, can you tell me what's the minimum font size I should use?

21:41

What's the minimum pixel size for a logo?

21:46

And the answer, which can sound frustrating, is it depends.

21:51

But it's actually the true answer because it's very context driven.

21:55

The size of font is going to vary greatly if we're talking about the desktop version of a website versus the phone handheld mobile version of a website.

22:07

It's going to be different depending on the type of website, whether it's an app, whether it's a subpage of a website.

22:17

So instead of saying to you, you have to use 12-point font, which might look ridiculously small on a big desktop website and might look ridiculously large on a mobile site, say clear and prominent disclosure.

22:31

So if we take it back to the basics, we need to make sure that any advertising that's out there, this is true for all advertising, but especially in team name advertising, we want to make sure that the name of the authorized licensed mortgage brokerage and its license number is there.

22:51

And if you're mentioning an individual in any of that marketing or advertising materials, that you're using the license name and the approved authoritative title, which matches your license class, mortgage broker, broker, mortgage agent level one, mortgage agent level two.

23:12

At this time, I'm going to turn it back to Cheryl, who is going to send in some questions to us that that have been coming in.

23:21

So welcome back, Cheryl.

23:24

Thank you, Jenny.

23:26

So now, like you mentioned, we'll take some time to respond to the questions that we've received through the chat.

23:32

If you have any questions, you still have time to enter them using the questions icon on your screen.

23:38

So now for our first question, we'll give it to Jenny.

23:42

Why did FISRA develop this guidance?

23:47

There's a couple of reasons why we developed the guidance.

23:50

I think what the primary objective the guidance is, is to ensure that there's clarity and transparency in the mortgage sector while ensuring that there's consumer protection.

24:04

At the end of the day, consumers looking for a mortgage should always be able to quickly and easily identify who they're working with and who is accountable in the event that concerns arise.

24:14

But in terms of why now or why has this come up, as mentioned by Gina at the beginning, we heard a lot from a lot of people.

24:23

We got a lot of feedback about this topic very specifically.

24:27

And so we took a look and we assessed the fact that it does actually have an impact on consumers and it does feed into challenges that we have seen in poor consumer outcome situations.

24:46

So it was important to put this out.

24:48

Again, we highlight that this is proposed.

24:51

So the important thing here is that this isn't the new rule or the new way.

24:58

What this is, is us explaining that if team names are going to be used, this is the framework under which we have comfort that principal brokers can follow this and ensure that team names are used appropriately.

25:17

I do know that sometimes we get the question of, this is going to add new responsibilities onto the principal broker.

25:27

And I wanted to address this question by reminding principal brokers that this is already a responsibility that you're taking care of.

25:36

You're already taking a look out there for the agent and broker advertising that is done by your agents currently under your own brand.

25:47

The only difference here would be that you're taking a look at Teams and approving the use thereof.

25:53

So it's not an addition of 17, 18 more steps or requirements onto a principal broker.

26:01

It's an extension of what the broker is already doing or the assigned person who is doing the approvals and reviews of marketing and advertising at the brokerage. Thanks, Cheryl. Thank you, Jenny. Our next question will go to Gina.

26:22

Gina, why is the principal broker responsible for approving and monitoring team names?

26:28

So I'm going to echo a little bit of what Jenny just said and re-emphasize that the principal broker really is the compliance motor of the brokerage.

26:40

This is essentially advertising and the oversight of advertising.

26:45

These are business decisions.

26:47

And it's a business decision for the brokerage and the principal broker to allow or disallow the use of team names by their authorized agents and brokers.

26:57

The responsibility for approving and monitoring of the use of team names does lie with the principal broker and they must ensure compliance with FISRA guidelines and regulations.

27:08

So, as Jenny said, this is already a requirement.

27:11

PBs should be aware of the kinds of advertising that their authorized agency brokers are using at present.

27:18

This is just another layer to make sure that those advertising are not causing any consumer confusion between the fact that a team is authorized by a brokerage, ultimately the brokerage is responsible for the mortgage transaction.

27:36

FISRA provides the regulatory framework, but it's the PB's duty to ensure that team names, if the brokerage decides there to be used, are used in a manner that's consistent with the proposed guidance.

27:49

So not approving team names, not monitoring team names, would be considered a contravention by FISRA.

27:58

Thanks, Cheryl.

27:59

Thanks.

28:00

That makes a lot of sense, and I hope that clarifies things for the licensees.

28:04

Thank you.

28:05

So we'll move to another question.

28:08

Jenny, what does prominent disclosure mean, and how can I ensure my materials comply?

28:15

That's a great question, and I'll hark back to the idea of things being different and context-driven based on the style, method, format of the public relations material.

28:31

So what prominent means can't be defined as a specific size limitation, font size or image size.

28:41

What prominent means is that it's really noticeable.

28:46

And you say, Jenny, what does really noticeable mean?

28:48

Well, this is where we have to put a little bit of that reasonable average consumer test.

28:54

If I, as an average consumer, land, for example, on your website, I should know very quickly who the authorized brokerage is.

29:07

If I land on your website, and my first impression is that, for example, Poutine Mortgages is the licensed brokerage, if that is the impression that I get when I land on your website, your website is potentially misleading people because there is not enough prominence on the actual authorized brokerage name.

29:29

So one way to think of it is at least as prominent.

29:36

So if using a comparator is helpful, if your logo is this big for your team, then the logo for the brokerage that authorizes you should be so big.

29:48

or if the name or license number is written in a certain fashion for the team name, we don't want the brokerage side of it to be materially different and hidden.

30:02

So this here kind of goes back to the idea of many websites with the authorizing brokerage name and license number showing only in teeny tiny bits at the bottom footer.

30:17

That is not what I would consider the place where a reasonable average person is going to look to see who they're doing business with.

30:26

So think about things that are logical and reasonable.

30:29

If it's not right on the landing page of whatever format or of media it is, the next most reasonable place a person is going to look is in something like the profile or about me.

30:41

I really shouldn't have to click more than, well, ideally none, no clicks, I should be able to tell right on the very first page, which is where I'm going to land, but at the most I really shouldn't have to click more than once to see everything I need to see.

30:59

So prominent means that when a person of an average reasonable consumer lands on the website, they can tell, it is clear to them who is behind as the licensing authorizing brokerage.

31:16

If you're unsure, get five of your family members to take a look at a website without telling them anything and ask them, who are you working with?

31:25

And if they don't all come back with, I'm working with ABC123 Brokerage and think that they're working with Poutine Mortgages, then that gives you the feedback you need to know that based on these five individuals that seem like average consumers. This is not prominent enough because it didn't come through.

31:43

Thanks Cheryl. We've received some interesting questions about documentation.

31:49

So Gina, are team names allowed in mortgage documentation shared with clients?

31:56

Thanks Cheryl, that is a really good question.

31:58

No, team names can only appear in public relations materials not in mortgage documentations. This is really, really important.

32:08

These rules are primarily for advertising only.

32:14

All mortgage documentation must be completed using the authorized name and license number of the brokerage and the mortgage agent or broker's licensee name entitle.

32:25

The advertising principles apply only to advertising, not to mortgage documentation like disclosures and the mortgage contract itself. Thanks, Cheryl.

32:38

Thanks for clearing that up.

32:39

I encourage everyone to continue submitting your questions in the chat as we still have a few minutes.

32:46

How do I make sure my team name advertising is compliant? What do I do if I'm unsure? Jenny, did you want to take that one?

32:55

Sure. Thank you, Cheryl.

32:57

It looks like I might have preempted this one just a tiny little bit.

33:01

So to make sure your team advertising is compliant, make sure that every time you see, every time you are creating your advertising and you're putting your team name or brand or logo on something, that just as prominently you have your authorizing brokerage. Think of it as a tag team, so to speak.

33:22

Where you've got one, you've got the other. And what can you do if you're not sure?

33:26

I would come back to that, you know, ask people who are not in your office, who are not in the industry, and have them take a look at a website that you've developed or your app or whatever it is that you're looking at.

33:41

And I really do think that, you know, five individuals are going to have very different opinions and backgrounds and frames of reference, but they're likely all going to come back with a similar response when the question is, who are you working with when you contact these folks in this advertising?

34:03

So I would say ask, ask uninvolved and folks who are out of the industry, there used to be the grandparent test or something to that effect, right?

34:17

So if you sat your grandparent or family member in front of the website, would they be able to tell?

34:24

And you can use something like that as well.

34:27

When in doubt, I would err on the side of caution.

34:31

You are never going to be wrong for emphasizing the licensed brokerage and its license number.

34:39

That's a great tip, thanks Jenny.

34:41

So, Gina, we'll give the next one to you.

34:44

What happens if my principal broker doesn't approve or monitor my use of a team name?

34:51

Thanks, Cheryl.

34:52

And I think I mentioned this in an earlier part of the presentation, the decision whether or not licensees of a brokerage are allowed to use team names is a business decision.

35:04

So it's something the principal broker and the brokerage has to decide.

35:08

licensees cannot decide this for themselves.

35:11

The principal broker is responsible for not only authorizing the use of team names, but adequately monitoring their use by licensees who are authorized by the brokerage.

35:22

So if they do not adequately monitor the use of team names in advertisements, this could lead to non-compliance with the regulations. We don't want that.

35:32

And principal brokers are responsible, as we said, they're already responsible regardless of this guidance.

35:40

They're already responsible for ensuring that all agents and brokers authorized by the brokerage are complying with the Act and its regulations and FISRA guidance.

35:50

So this is a part of that, and they are required to make sure that any advertisement is compliant with the requirements of the advertising provisions under EMBLA.

36:01

Thanks.

36:02

Thanks, Gina.

36:04

Jenny, are there any penalties if I failed to comply with the FSRA's proposed guidance on team names?

36:15

That's a great question.

36:17

So first, I'll highlight that this is still proposed guidance.

36:21

So I'll start with that and say in the event where the guidance is finalized and comes into effect, at that point, it is enforceable where we have concerns that there is potentially misleading information out there.

36:42

So we take a risk-based approach, but we also handle inquiries and complaints that come in.

36:49

So it's really important to note that yes, in fact, It is a guideline, once it's in force, in the fashion, whichever fashion it will finalize into.

37:02

It is in force, which means it can be reviewed, it can be implemented, it can be enforced against.

37:12

And the way that is done and the impact and severity of what might happen next really depends on the contextual situation.

37:21

So it can be a situation where a fizz or a context even says, Hey, your website has been brought to our attention.

37:31

Please make edits and corrections to make sure that it's not misleading.

37:37

We have situations where two days later that website is tidied up and we're able to work it together with the licensee before it becomes an actual issue or concern.

37:49

And there's other times where we have repeated requests.

37:53

We have folks who fix up the website and leave it fixed for about a month and then think we won't look.

38:01

And then a month later we check in on it and notice, oh, interesting.

38:05

It went back to the old information.

38:08

And that tells us a lot about the way things are working when business decisions are made with the brokerage.

38:16

So I think it's important to keep in mind that, particularly given this is direct to consumer style content that we're talking about, and directly related to your doing the business, yes, it can be enforced against and there can be penalties and enforcement actions.

38:39

Gina, this is an interesting one.

38:41

Can I use a team name for marketing purposes if it reflects a shared language or culture?

38:47

Oh, I love this question. This is a great question, Cheryl.

38:53

This is actually one of the really great reasons why FISRA wanted to release guidance on this.

39:02

Using a team name that reflects shared language or culture can actually be really beneficial for connecting with consumers who may feel more comfortable getting financial advice on mortgage products from someone that shares that language or shares that culture.

39:19

So, the use of team names can be very effective in connecting some consumers with mortgage professionals that are going to be able to provide them that advice in that language that they're seeking the advice in.

39:34

The team name, however, must still comply with FISR's guidelines.

39:40

There must be an ensurement of clarity, transparency, correct display of the brokerage's authorized name and license number, all of those good things that Jenny described earlier to make sure that there is no potential consumer confusion regarding who's authorizing the transaction, meaning the brokerage, who's responsible for the transaction.

40:01

But yes, team names can be used for marketing purposes to reflect a shared culture or language, and this is really a great way for brokerages who have teams that really respond to a certain community to be able to connect them with clients that are going to most benefit from transacting with them.

40:23

So yes, thanks Cheryl, that was a great question.

40:26

Great point, thank you.

40:28

Jenny, I'll send this one over to you.

40:30

Can I use a team name that might make it seem like I'm an independent brokerage?

40:39

That's a great question.

40:40

And I'm hoping that after we've gone through a bunch of these questions and after folks maybe take a minute to synthesize the material, take a look at the presentation again, it should be pretty clear that that's definitely the point that you don't want.

40:59

So if I land on your website and it looks like the team is a brokerage, that's actually one of the first things I'm going to for if I'm trying to determine whether a website or advertising material is compliant. So to be very clear, no.

41:18

If you are creating advertising that looks like the team is the brokerage, then that is not compliant.

41:27

What I'd also like to highlight just from something that I heard in a previous question, that was about what if my principal broker doesn't approve my team name or doesn't monitor.

41:38

I just want to clarify that that means assuming that at that brokerage team names are allowed.

41:45

So want to clarify that we're not saying that principal brokers must allow team names. That is not what we're saying.

41:53

That is a decision of the brokerage and the strategy on whether team names will or won't be allowed is a brokerage based business decision.

42:01

the response we were referring to is if the principal broker is responsible for monitoring team names because it's a permitted process within the brokerage then the obligation stands and yes the principal broker should be approving them and monitoring them and if they are not if you are working at that brokerage encourage you to contact appropriate people within the brokerage management or reach out to us here at FISRA. Thanks for the reminders, Jenny.

42:38

Gina, how can I, as a principal broker, allow team names while ensuring they avoid confusion for the consumer? Oh, that's a good question. Thank you.

42:49

Thanks Cheryl.

42:50

So to avoid confusion, if the brokerage does decide to allow team names, we recommend at FSRA that the brokerage establish clear policies and procedures and that they implement those policies and procedures so that you're providing guidance for your licensees.

43:10

So when they seek to have you approve the use of the team name or the principal broker wants to oversee your advertisement, that you have some guidance in creating that so that they're not starting from scratch and that they're consistent and that they're clear.

43:33

So this includes ensuring that the brokerage's authorized name and license number are disclosed prominently alongside the team names so that it's obvious who the authorizing brokerage is, and that consumers are aware that that brokerage is accountable for the mortgage transactions.

43:51

So setting up clear policies and procedures, if this is the decision the brokerage takes and the principal broker wants to allow the licensees to use team names, having policies and procedures in place for that is going to be really helpful to ensuring that there as a process for overseeing that advertisement that your licensees can follow in advance of actually making the advertisements.

44:16

Thank you.

44:18

So we have time for one last question.

44:21

I guess we'll close it off with you, Jenny.

44:23

Can I just add the brokerage's name to the materials with my team name?

44:29

So if I understand the question correctly, it's asking if I can take team materials and just kind of add my brokerage's name on it, that would not be considered, that wouldn't be the approach I would suggest.

44:46

To be very clear, just slapping a logo of another brokerage, of the authorizing brokerage is not enough.

44:53

You need to take a look at the context and everything. Is it at least as prominent as the team name? Does it clarify?

45:02

Is the license number there, and does the advertising as a whole show that the team is authorized under a specific licensed brokerage?

45:16

Great.

45:16

Well, thank you, Gina and Jenny, for the presentation, and thank you to everyone for taking the time to be with us today.

45:22

I'd also like to remind everyone that this guidance is in the proposal stage and is not enforced, so it can change as a result of the consultation feedback.

45:32

So please be sure to send in your comments on this consultation, which will remain open until April the 9th.

45:40

Today's town hall was recorded and will be posted to our website in the coming weeks along with the Q &A's.

45:46

As always, you can contact Visra if you have any questions.

45:50

We hope you found this session helpful. Have a great rest of the day.

45:54

Thanks, everyone.