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Verico Pro Funds Mortgages Inc. and Valour Mortgage Services Inc. Agree to Licensing Conditions

TORONTO, October 9, 2020 – The Financial Services Regulatory Authority of Ontario (FSRA) and Verico Pro Funds Mortgages Inc. (Pro Funds), Pro Fund’s Principal Broker, and Valour Mortgage Services Inc. (VMSI) have agreed to certain conditions imposed on their licenses.

FSRA has determined that investors in certain projects have not received adequate disclosures about their non-qualified syndicated mortgage investments (NQSMI) that Pro Funds brokered. Pro Funds, Pro Funds’ Principal Broker and VMSI have been cooperating with FSRA.

To provide enhanced disclosure to investors, the conditions require VMSI to provide them with additional information about their investments. This includes detailed project viability assessments and disclosure to investors. Investors can expect to receive this information within the next 90 days.

Details about the licensing conditions are available on the licensing database.  

Pro Funds and VMSI may continue to conduct mortgage business as long as they follow the conditions of their licences.

Learn more about FSRA’s work to protect investors in the mortgage brokering sector:

  • Supervision Approach for Syndicated Mortgage Investments:  this guidance demonstrates FSRA’s commitment to strengthening protections available to investors in High-Risk SMIs. Mortgage brokerages must provide, at the time of sale, adequate disclosure of the risks associated with syndicated mortgages in a way that is easily comprehensible to and can be readily understood by investors. FSRA actively reviews NQSMI materials and, when it identifies inadequate or misleading disclosures, contacts the mortgage brokers to confirm and mitigate those risks. 
  • Proposed guidance approach for supervising mortgage brokerages and administrators that are engaged in SMIs after the transfer to the OSC of regulation of sales of  NQSMIs to retail investors
  • FSRA’s supervision of the mortgage brokering sector is focused on: protecting vulnerable consumers from turning to inappropriate alternative lenders to obtain mortgages; ensuring consumers have the information they need to make informed decisions about mortgage-based investments and to remain informed about their investments; and promoting good behaviour and deterring misconduct within mortgage brokerages

FSRA is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members.  Learn more at www.fsrao.ca. 

For media inquiries

Malon Edwards
Senior Communications Officer
Financial Services Regulatory Authority
C: 647-296-5479
Email: [email protected]

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