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The Government of B.C. introduced new legislation today that will modernize the mortgage broker sector in B.C., enabling BCFSA to provide greater public protection as a modern, efficient, and effective financial services regulator.
The newly introduced legislation will replace the outdated Mortgage Brokers Act with a new Mortgage Services Act and greatly expand BCFSA’s tools to regulate the mortgage broker sector, including enabling BCFSA to develop rules for licensing and mortgage broker conduct. BCFSA will have the power to set licensee standards of conduct and hold the industry to a higher standard, while enhancing discipline processes and issuing greater penalties for misconduct. This will also allow for more powers to investigate and make orders against unlicensed persons.
The new Mortgage Services Act aligns more closely with other financial services legislation in B.C., including the current Real Estate Services Act, allowing for efficient regulation and helping to encourage responsible business conduct with more than 5,000 registered mortgages brokers in B.C.
This will ultimately provide greater protection for both borrowers and lenders in British Columbia, and harmonize our province with other jurisdictions who have modernized their mortgage broker legislation, particularly Ontario.
BCFSA anticipates that this change to the regulatory framework will occur over several years.
Read the Government of B.C.’s news release: https://news.gov.bc.ca/releases/2022FIN0048-001485
BC Financial Services Authority (“BCFSA”) is a Crown regulatory agency of the Government of British Columbia. BCFSA oversees the financial services sector which includes pension plans, mortgage brokers, real estate services, real estate development marketing, and financial institutions (credit unions and insurance and trust companies). BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”).First Reading: Bill 29 – 2022: Mortgage Services Act