Effective May 1, 2020, the mortgage brokerage sector will be governed by the Act respecting the distribution of financial products and services This link will open in a new window (the “Distribution Act”) and regulated by the AMF. In preparation for the transfer, the AMF is finalizing the related regulatory framework.

An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions (“Bill 141”) will result in changes to the Distribution Act. In particular, mortgage brokers, who are currently regulated by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), will become representatives within the meaning of the Distribution Act. They will therefore be regulated by the AMF as of May 1, 2020.

Licence transfer

Beginning on May 1, 2020, two separate authorizations will be required to carry on mortgage brokerage and real estate brokerage activities: a mortgage broker certificate (issued by the AMF) and a real estate broker licence (issued by the OACIQ).

Mortgage brokers

The files of licensed mortgage brokers will be automatically transferred to the AMF on May 1, 2020.

Real estate brokers or real estate agencies (full-service)

Licensed real estate agencies and full-service real estate brokers who wish to continue to carry on mortgage brokerage activities after May 1, 2020 must notify the OACIQ This link will open in a new window in writing by August 1, 2019.

Career entry process

Until May 1, 2020, candidates wishing to pursue a career in the mortgage brokerage field must contact the OACIQ. The AMF is currently working on transitional measure planning—particularly with recognized educational institutions with a view to developing the tools needed for the career entry process. 

In the case of candidates who are in the career entry process at the time of the transfer, the AMF will recognize the steps completed with the OACIQ prior to May 1, 2020 (basic training, examination and licence application). The information related to these candidates will be forwarded to the AMF by the OACIQ prior to the transfer.

Some steps in the career entry process that will be subject to the AMF’s new regulatory framework may differ from the current OACIQ process and include additional requirements.

Training and evaluation curriculums for mortgage brokers and responsible officers

Validation workshops were held with industry specialists to develop the Mortgage Brokerage Qualification Program (MBQP). The curriculums are the result of this collaborative effort.

The training curriculum consists of the competencies illustrating the full scope of the tasks and operations that can be accomplished by a mortgage broker upon career entry.

The evaluation curriculum is the section of the MBQP that sets out competency evaluation expectations.

Continuing education program

The OACIQ’s mandatory continuing education program will remain in effect until May 1, 2020. The related requirements are therefore still in force. The AMF will provide timely information about the changes that will take effect as of May 1, 2020 and about the transitional measures that will apply to them. 

The licensed full-service real estate brokers who decide to continue to carry on mortgage brokerage activities after May 1, 2020 will be required to successfully complete additional training.

Liability insurance

Under the Distribution Act and its regulations, all registrants must subscribe for and maintain professional liability insurance covering their activities. The AMF is currently working out the details of the applicable framework that will apply and recommends that registrants wait for those details to be announced before taking any steps.

Fees and contributions

Mortgage brokers who will be subject to the AMF regulatory framework will need to provide for the fees associated with obtaining or renewing a certificate as well as other annual contributions. Agencies will be required to pay registration fees and contributions to the compensation fund. The AMF is working to develop a regulatory framework containing all the fees that will be applicable to mortgage brokers as of May 1, 2020. Fees and contributions will be based on the fees and costs payable to the AMF by representatives but may differ depending on factors specific to mortgage brokerage.

Way to carry on business and registration process

Between now and August 1, 2019, real estate brokers must inform the OACIQ of their intention to obtain a mortgage broker certificate from the AMF, if applicable. If the real estate agency with which a real estate broker is affiliated decides not to register with the AMF as a mortgage agency, the real estate broker will then have until December 1, 2019 to notify OACIQ of his or her decision to register.

Remuneration, commission sharing and client referrals

As of May 1, 2020, the rules and practices relating to client referrals, remuneration and commission sharing will apply to mortgage brokerage. For information regarding the relevant preliminary provisions, consult the Real estate brokers and mortgage brokerage referrals section.

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