Rules of conduct and rules governing the pursuit of activities as a representative Mortgage brokerage

Representatives must, in the practice of their profession, always remain independent and avoid placing themselves, directly or indirectly, in a situation in which they would be in an actual or potential conflict of interest. They must subordinate their personal interests to those of their clients.

Rules of conduct of mortgage brokers: What you need to know

The AMF provides the necessary framework for the activities governed by the Act respecting the distribution of financial products and services.

For the mortgage brokerage sector, and more specifically for brokerage activities, the AMF:

  • Develops compulsory initial training for mortgage brokers;
  • Ensures future mortgage brokers acquire the necessary skills by administering exams specific to the mortgage brokerage sector;
  • Administers the rules governing eligibility (e.g., the probationary period) and the renewal of certificates;
  • Ensures mortgage brokers acquire the compulsory professional development units during the reference period;
  • Sets the requirements to pursue activities as a representative within the sector, including the rules of conduct of mortgage brokers.

By determining, and ensuring compliance with the rules of conduct applicable to mortgage brokers, the AMF ensures their integrity and credibility. This approach is intended to protect consumers and create public confidence in mortgage brokers.

What is professional conduct?

The professional conduct of mortgage brokers covers all the rules that establish the behaviours that mortgage brokers must adopt and avoid when carrying on mortgage brokerage activities.

These rules are set out in Division V.1 (Rules of conduct of mortgage brokers) of the Regulation respecting the pursuit of activities as a representative. For example, all AMF-certified mortgage brokers must:

  • act with respect and integrity;
  • act with prudence, diligence, objectivity and discretion;
  • act with competence;
  • maintain their knowledge and abilities;
  • not act on behalf of a client without obtaining the appropriate assistance when they do not have the necessary skills;
  • act with independence in respect of their clients and in their clients’ best interests; in other words, they must not place themselves in a conflict of interest;
  • be transparent in respect of their clients;
  • appropriately advise their clients and give them all such information as may be necessary or useful;
  • ensure that the loan secured by immovable hypothec that they propose is suited to the client’s situation and needs;
  • respect and ensure the confidentiality of all information obtained about their clients;
  • provide their clients with the explanations that they need to understand their remuneration;
  • claim fair and reasonable compensation;
  • not make any false or misleading representations;
  • cooperate with the AMF in a transparent and diligent manner and must not mislead it.

Mortgage brokers who fail to comply with the rules of professional conduct face sanctions, fines or even the revocation or suspension of their certificate, or the attachment of restrictions or conditions thereto.

Mortgage brokers must remain vigilant and demonstrate integrity when performing all the acts that are directly or indirectly related to their mortgage brokerage activities. Professional conduct must be an integral part of all aspects of their functions.