O. Reg. 34/22: EXEMPTIONS FROM THE REQUIREMENTS TO BE LICENSED
filed January 28, 2022 under Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29
Skip to contentontario regulation 34/22
made under the
Mortgage Brokerages, Lenders and Administrators Act, 2006
Made: January 27, 2022
Filed: January 28, 2022
Published on e-Laws: January 28, 2022
Printed in The Ontario Gazette: February 12, 2022
Amending O. Reg. 407/07
(EXEMPTIONS FROM THE REQUIREMENTS TO BE LICENSED)
1. Paragraph 5 of section 8 of Ontario Regulation 407/07 is revoked.
2. The Regulation is amended by adding the following section:
For certain mortgage transactions
10.1 (1) In this section,
“mortgage investment entity” has the same meaning as in CSA Staff Notice 31-323 entitled “Guidance Relating to the Registration Obligations of Mortgage Investment Entities”, dated February 25, 2011, issued by the Canadian Securities Administrators and available on the website of the Ontario Securities Commission; (“entité de placement hypothécaire”)
“permitted client” has the same meaning as in section 1.1 of National Instrument 31-103 (“Registration Requirements, Exemptions and Ongoing Registrant Obligations”), being a rule of the Ontario Securities Commission, as that rule read on February 18, 2021. (“client autorisé”)
(2) A person or entity is exempted under subsection 6 (7) of the Act from the requirement in section 2 or 3 of the Act to have a brokerage licence to deal in or trade in mortgages if,
(a) the person or entity is a permitted client that is not an individual; and
(b) the person or entity is exclusively dealing in or trading in mortgages on its own behalf or on behalf of a permitted client that is not an individual.
(3) Subsection (2) does not apply to a person or entity that is dealing in or trading in mortgages on behalf of a mortgage investment entity if the shares or units in the mortgage investment entity are sold to investors who are not permitted clients. However, subsection (2) does apply if the selling of the shares or units is regulated under the Act or the Securities Act.
(4) A person or entity is exempted under subsection 6 (7) of the Act from the requirement in section 4 of the Act to have a brokerage licence to carry on business as a mortgage lender if,
(a) the person or entity is a permitted client that is not an individual; and
(b) the person’s or entity’s business as a mortgage lender consists exclusively of lending to borrowers who are permitted clients that are not individuals.
3. Subsection 11.1 (1) of the Regulation is amended by striking out “Real Estate and Business Brokers Act, 2002” wherever it appears and substituting in each case “Trust in Real Estate Services Act, 2002”.
Commencement
4. (1) Subject to subsection (2), this Regulation comes into force on the later of February 1, 2022 and the day this Regulation is filed.
(2) Section 3 comes into force on the later of the day section 1 of the Trust in Real Estate Services Act, 2020 comes into force and the day this Regulation is filed.