Submortgage broker receives maximum penalty for carrying on business without registration

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Harvinder Makkar has been fined $50,000 plus $5,000 in investigative costs after being found to have carried on business as a submortgage broker without being registered to do so.

Makkar was first registered as a submortgage broker in 2013. In 2021 she renewed her registration under Centum Mortgage Solutions. Centum Mortgage Solutions shut down operations and terminated its brokerage registration in January 2023. At that time, BCFSA notified Makkar that she was no longer authorized to conduct mortgage business in B.C. as the brokerage at which her registration was held had closed. Makkar continued to provide mortgage services and hold herself out as a mortgage broker until December of 2023, arranging 10 mortgages and receiving approximately $61,000 in fees.

Under the current Mortgage Brokers Act, submortgage brokers must operate through a registered mortgage brokerage and under the supervision of a designated individual. This requirement protects consumers by ensuring submortgage brokers are properly supervised, comply with regulatory requirements, and are accountable for the services they provide. Mortgage brokerages and designated individuals are responsible for overseeing the activities of submortgage brokers, helping to ensure consumers receive services that meet professional and regulatory standards.

“The requirement to operate only through a mortgage brokerage is not a formality; it is a fundamental safeguard for consumers,” said Jon Vandall, Senior Vice President, Financial Professionals, BCFSA. “Individuals who provide mortgage services outside the regulatory framework avoid oversight and accountability that protects the public. This case demonstrates that BCFSA will take enforcement action when individuals choose to disregard those requirements.”

The new Mortgage Services Act (MSA), which comes into force in October 2026, further reinforces the importance of brokerage supervision and accountability. Under the MSA, the designated individual role will be replaced by a principal broker, who will be subject to enhanced oversight and compliance requirements. These changes are intended to strengthen consumer protection by ensuring mortgage professionals operate within a robust supervisory framework and are accountable for meeting the increased regulatory and professional standards set out by the MSA.