Mortgage Professionals Canada – Fireside Chat with BCFSA CEO, Tolga Yalkin

• Industry Communications

2 June 2025

Fireside Chat | Tolga Yalkin – Vancouver, June 2, 2025

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1. The Big Picture: Why the Mortgage Services Act (“MSA”), and Why Now?

Q: Let’s start with the bigger picture—why was a new framework like the MSA needed, and how are you approaching its implementation?

A: The original Mortgage Brokers Act was passed over 50 years ago—so the landscape has changed dramatically. Back then, the industry was smaller, less complex, and the idea of digital lending platforms or sophisticated syndication models simply didn’t exist. The mortgage market today is larger, more layered, and operates at a much faster pace. Products have become more complex, the number of actors has grown, and the stakes for consumers are much higher—especially as mortgage sizes have outpaced income growth.

We needed a framework that reflects today’s realities—one that’s built for current risks, adaptable to emerging ones, and able to support trust in the system over the long term. The new MSA gives us that foundation. But we also know that a regulatory reset of this scale can’t be implemented overnight. That’s why our focus has been on practical rollout—engaging with industry, setting up a Technical Working Group, and creating a space where brokers are actively shaping how the new framework lands in practice. This isn’t change for change’s sake. It’s a necessary update—one that brings us into alignment with the modern mortgage environment and better protects everyone involved.

2. Navigating the Landscape: How Are Brokers Managing Overlapping Rules?

Q: Mortgage brokers are dealing with provincial rules, federal AML requirements, and in some cases, even securities oversight. How is BCFSA helping them navigate this?

A: That layering is real—and we hear how challenging it can be. In some areas, like AML, the regulatory framework is fundamentally different and owned federally—so coordination is key. In others, like mortgage broker conduct, where the rules are more similar across provinces, there may be more room for convergence, mutual recognition, or even standardization over time. We’ve heard challenges related to continuing education for brokers who are registered in multiple jurisdictions and are working with our MBRCC partners to align focus areas and avoid duplication where possible. While we can’t change the federal or securities landscape, we can focus on making provincial expectations as clear and workable as possible. That means plain-language guidance, targeted education, and collaboration with other regulators when it makes sense. Harmonization helps reduce friction for brokers and improves outcomes for consumers. We’re not trying to make every rule identical—but we are working to build coherence across boundaries. That might include coordinated guidance, shared best practices, or thoughtful dialogue with peers in other provinces. You can read more about how we think about harmonization in remarks I recently delivered.

3. Cost vs Value: How Do You Respond to Concerns About Fees?

Q: There’s been some questions on industry fees. How do you respond to that concern?

A: It’s understandable that fees draw attention. From our perspective, it’s important that any fee model reflects a few core principles: fairness, proportionality, and predictability. We recognize the responsibility we carry to use funds efficiently—making sure we deliver value back to the sector through practical guidance, strong oversight, and clarity of expectations. As an integrated regulator, we oversee multiple sectors, allowing us to leverage economies of scale. This is also why periodic updates to fees are important. It ensures that the cost of regulation for each unique sector is borne by that sector. It’s also about ensuring fees align with the magnitude of risk of different business models and are structured in a way that’s transparent and easy to understand. These adjustments take time, but they help ensure the framework remains sustainable and the sector has advance notice of any changes. And that’s also where mortgage brokers bring unique value: client-first advice, lender choice, and flexibility. Those strengths help define the sector and set it apart.

4. Competing and Differentiating: Can Brokers Really Compete with Banks?

Q: Some brokers say they’re at a disadvantage compared to banks when it comes to rates and product access. What’s your view on that?

A: It’s true that banks have scale, existing customer relationships, and, in many cases, broader product flexibility due to federal regulation. But despite that, the market share of mortgage originations through brokers in Canada continues to grow—rising from 26% in 2008 to over 35% in 2023. Among first-time homebuyers, that number is even higher. That trend tells us something important: consumers are seeing value in what brokers offer. When we unpack the drivers of that growth—personalized service, flexible access to lenders, advocacy, and transparency—we also see the path forward. These are the strengths brokers should continue to lean into. This isn’t about competing on identical terms—it’s about doubling down on what sets the broker channel apart and doing so with confidence and professionalism. In other words, the very factors contributing to broker growth today also point to opportunities for even greater differentiation and momentum going forward.

5. Maintaining Standards: What Are You Seeing on the Enforcement Side?

Q: We’ve seen some enforcement cases in the sector lately. What should brokers take away from that?

A: What we’re seeing—unlicensed activity, fraud, AML issues—isn’t new, but it is persistent. These behaviours erode public confidence and undermine the integrity of the entire sector. That’s why we take enforcement seriously. When necessary, we act decisively—not just to address individual misconduct, but to protect the reputation of the system as a whole.

There’s real value in tackling these issues proactively. It supports a level playing field, reinforces trust, and promotes a healthy, respected mortgage brokering environment. At the same time, we know most brokers are committed professionals who want to do the right thing. That’s why we place just as much emphasis on guidance, education, and clear expectations as we do on enforcement. This is a shared responsibility—and it’s through that shared commitment to professionalism that we strengthen the system and promote the sector.