Montréal – The Autorité des marchés financiers (AMF) today published the Draft Regulations relating to mortgage brokerage supervision together with a notice and request for comment on them.
An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions, assented to on June 13, 2018, introduced a number of changes to the Act respecting the distribution of financial products and services (Distribution Act). In particular, the government will transfer mortgage brokerage supervision to the AMF on May 1, 2020. As of that date, mortgage agencies and mortgage brokers that are currently holders of a licence issued by the Organisme d’autoréglementation du courtage immobilier du Québec (Organization) will be required to carry on their activities in accordance with the Distribution Act and its regulations.
The AMF has chosen to apply the existing framework for the other sectors governed by the Distribution Act to mortgage brokerage. It is also proposing to add rules specific to this sector to take into account the sector’s particular characteristics. The AMF is proposing to adopt the following regulations:
- Regulation to amend the Regulation respecting the issuance and renewal of representatives’ certificates;
- Regulation respecting the compulsory professional development of mortgage brokers;
- Regulation to amend the Regulation respecting the registration of firms, representatives and independent partnerships;
- Regulation to amend the Regulation respecting the pursuit of activities as a representative;
- Regulation to amend the Regulation respecting firms, independent representatives and independent partnerships;
- Regulation to amend the Regulation respecting alternative distribution methods;
- Regulation to amend the Regulation respecting the keeping and preservation of books and registers;
- Regulation to amend the Regulation respecting fees and contributions payable;
- Regulation to amend the Regulation respecting information to be provided to consumers.
A notice and request for comment published with the Draft Regulations explains the rules respecting career entry, registration, professional development and the pursuit of mortgage brokerage activities. It also clarifies the process by which supervision of mortgage broker and mortgage agency activities will be transferred to the AMF.
The AMF’s regulations applicable to mortgage brokerage will come into force on May 1, 2020. In preparation for the integration of this sector, the AMF is working with the Organization to facilitate the transfer.
Those interested in submitting comments regarding the Draft Regulations may do so before November 16, 2019.
Public information session
The AMF will hold a public information session to explain the key orientations of the Draft Regulations and to open a discussion with interested stakeholders.
Date: Friday, October 18, 2019
Time: 9:30 a.m. to 12:45 p.m.
Location: Palais des congrès de Montréal
The session will also be broadcast live over the Internet.
For details, please visit our website.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.