O. Reg. 408/07: MORTGAGE BROKERAGES: LICENSING
filed July 27, 2007 under Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29
Skip to contentONTARIO REGULATION 408/07
made under the
MORTGAGE BROKERAGES, LENDERS AND ADMINISTRATORS ACT, 2006
Made: July 25, 2007
Filed: July 27, 2007
Published on e-Laws: July 31, 2007
Printed in The Ontario Gazette: August 11, 2007
MORTGAGE BROKERAGES: LICENSING
Eligibility Criteria
For a corporation
1. (1) A brokerage licence may be issued under subsection 14 (1) of the Act to a corporation if all of the following requirements are satisfied:
1. The corporation was incorporated under an Act of any jurisdiction in Canada.
2. The corporation has a mailing address in Ontario that is not a post office box and that is suitable to permit service by registered mail.
3. The corporation has errors and omissions insurance in a form approved by the Superintendent with extended coverage for loss resulting from fraudulent acts or it has some other form of assurance in a form approved by the Superintendent. The insurance or other assurance must be sufficient to pay a minimum of $500,000 in respect of any one occurrence involving the corporation or any mortgage broker or agent authorized to deal or trade in mortgages on its behalf and $1 million in respect of all occurrences during a 365-day period involving the corporation or any such broker or agent.
4. The application includes the particulars of the individual to be designated as the corporation’s principal broker. The individual must be eligible under subsection 7 (7) of the Act to be designated as a principal broker.
(2) In determining whether a corporation is not suitable to be licensed as a mortgage brokerage, the Superintendent is required by subsection 14 (1) of the Act to have regard to the following prescribed circumstances:
1. Whether, having regard to its financial position, the corporation cannot reasonably be expected to be financially responsible in the conduct of its business.
2. Whether the past conduct of any director or officer of the corporation affords reasonable grounds for belief that the business of the corporation will not be carried on in accordance with the law and with integrity and honesty.
3. Whether the corporation is carrying on activities that contravene or will contravene the Act or the regulations if the corporation is licensed.
4. Whether a director or officer of the corporation has made a false statement or has provided false information to the Superintendent with respect to the application for a licence.
(3) If application is made for the licence before July 1, 2008, the application must include evidence satisfactory to the Superintendent that the corporation will have the insurance or other form of assurance described in paragraph 3 of subsection (1) on and after July 1, 2008, but the corporation is not required to have the insurance or other form of assurance when the application is made.
(4) Subsection (3) is revoked on July 1, 2008.
For a partnership
2. (1) A brokerage licence may be issued under subsection 14 (1) of the Act to a partnership if all of the following requirements are satisfied:
1. The partnership was formed under the law of any jurisdiction in Canada.
2. The partnership has a mailing address in Ontario that is not a post office box and that is suitable to permit service by registered mail.
3. The partnership has errors and omissions insurance in a form approved by the Superintendent with extended coverage for loss resulting from fraudulent acts or it has some other form of assurance in a form approved by the Superintendent. The insurance or other assurance must be sufficient to pay a minimum of $500,000 in respect of any one occurrence involving the partnership or any mortgage broker or agent authorized to deal or trade in mortgages on its behalf and $1 million in respect of all occurrences during a 365-day period involving the partnership or any such broker or agent.
4. The application includes the particulars of the individual to be designated as the partnership’s principal broker. The individual must be eligible under subsection 7 (7) of the Act to be designated as a principal broker.
(2) In determining whether a partnership is not suitable to be licensed as a mortgage brokerage, the Superintendent is required by subsection 14 (1) of the Act to have regard to the following prescribed circumstances:
1. Whether, having regard to its financial position, the partnership cannot reasonably be expected to be financially responsible in the conduct of its business.
2. Whether the past conduct of any partner affords reasonable grounds for belief that the business of the partnership will not be carried on in accordance with the law and with integrity and honesty.
3. Whether the partnership or any partner is carrying on activities that contravene or will contravene the Act or the regulations if the partnership is licensed.
4. Whether a partner has made a false statement or has provided false information to the Superintendent with respect to the application for a licence.
(3) If application is made for the licence before July 1, 2008, the application must include evidence satisfactory to the Superintendent that the partnership will have the insurance or other form of assurance described in paragraph 3 of subsection (1) on and after July 1, 2008, but the partnership is not required to have the insurance or other form of assurance when the application is made.
(4) Subsection (3) is revoked on July 1, 2008.
For a sole proprietorship
3. (1) A brokerage licence may be issued under subsection 14 (1) of the Act to a sole proprietorship if all of the following requirements are satisfied:
1. The proprietor is a resident of Canada.
2. The sole proprietorship has a mailing address in Ontario that is not a post office box and that is suitable to permit service by registered mail.
3. The sole proprietorship has errors and omissions insurance in a form approved by the Superintendent with extended coverage for loss resulting from fraudulent acts or it has some other form of assurance in a form approved by the Superintendent. The insurance or other assurance must be sufficient to pay a minimum of $500,000 in respect of any one occurrence involving the sole proprietorship or any mortgage broker or agent authorized to deal or trade in mortgages on its behalf and $1 million in respect of all occurrences during a 365-day period involving the sole proprietorship or any such broker or agent.
(2) In determining whether a sole proprietorship is not suitable to be licensed as a mortgage brokerage, the Superintendent is required by subsection 14 (1) of the Act to have regard to the following prescribed circumstances:
1. Whether, having regard to its financial position, the sole proprietorship cannot reasonably be expected to be financially responsible in the conduct of its business.
2. Whether the past conduct of the proprietor affords reasonable grounds for belief that the business of the sole proprietorship will not be carried on in accordance with the law and with integrity and honesty.
3. Whether the sole proprietorship or the proprietor is carrying on activities that contravene or will contravene the Act or the regulations if the sole proprietorship is licensed.
4. Whether the proprietor has made a false statement or has provided false information to the Superintendent with respect to the application for a licence.
(3) If application is made for the licence before July 1, 2008, the application must include evidence satisfactory to the Superintendent that the sole proprietorship will have the insurance or other form of assurance described in paragraph 3 of subsection (1) on and after July 1, 2008, but the sole proprietorship is not required to have the insurance or other form of assurance when the application is made.
(4) Subsection (3) is revoked on July 1, 2008.
Licensees’ Authorized Names
Authorized names
4. (1) A brokerage licence is issued either in the legal name of the corporation, partnership or sole proprietorship or in the legal name and one other name that is registered to the corporation, partnership or sole proprietorship under the Business Names Act.
(2) Despite subsection (1), a brokerage licence cannot be issued to a corporation, partnership or sole proprietorship in any name that the Superintendent reasonably believes is,
(a) the same as or similar to the name of another licensee such that the use of that name by two licensees would be likely to confuse or mislead the public; or
(b) objectionable on any public grounds.
Commencement
Commencement
5. This Regulation comes into force on March 1, 2008.