Associate and Broker Compliance Requirements
Associates and brokers are required to act in the best interests of the borrower. The only exception to this requirement is certain situations outlined in the legislation where a private investor is involved. Associates and brokers need to ensure they understand this obligation, and comply with it.
Associates and brokers must submit an annual fee on or before April 1st.
All associates and brokers need to comply with the ongoing notification requirements to the Director, including notification within seven days of any of the following:
- a licence holder is no longer authorized to broker mortgages on behalf of the brokerage
- any charge under the Criminal Code
- any charge of an offence against the law of any country, province, or state, other than traffic offences.
There are other notification requirements in the legislation. The associate and broker must ensure they are familiar with these requirements, and provide these notifications within the required timeframe.
Brokers may be assigned responsibility to supervise one or more associates that broker mortgages on behalf of the same brokerage. Brokers must take this supervision responsibility seriously, and carry out necessary processes to ensure the associate is adequately supervised. Brokers should ensure they comply with the brokerage’s policies and procedures in carrying out any assigned supervision.
The Director must be immediately notified if there is a change in contact information such as email address, phone number, mailing address, or address for service.
A licence is automatically suspended if:
- a broker or associate is no longer authorized to broker mortgages on behalf of the brokerage named on their licence
- the brokerage named on the licence has its licence suspended or cancelled
If a licence is suspended, the licence holder must immediately cease all mortgage brokering activities until such time as the licence is reinstated.
Licences are not transferrable. If moving from one brokerage to another, brokers and associates will need to reapply for a licence with the new brokerage.
Continuing education requirement
As set out in the Act, every licensed associate and broker must complete the approved continuing education course from time to time. Licence holders will be notified when continuing education programs are required.