Expanding the Administrative Penalty Framework

BC Financial Services Authority has concluded its public consultation on proposed changes to the administrative penalty framework for real estate licensees.

The Minister of Finance has approved amendments to the Real Estate Services Rules to enhance the administrative penalty framework.

BCFSA will bring the Rules amendments into force on July 1, 2024.

Background

The administrative penalty framework supports BCFSA’s mandate by providing measured and proportionate response to particular instances of non-compliance with the Real Estate Services Act (“RESA”), and its associated regulations and rules. To learn more, see:

• Administrative Penalties under the Real Estate Services Act
• Real Estate Services Rules

Consultation Timeline

1. Phase 1: Administrative Penalty Technical Working Group
   (April – May 2023)
2. Phase 2: Public Consultation
   (September — November 2023)

Phase 2: Public Consultation on Proposed Amendments to the Real Estate Services Rules (Complete)

On September 27, 2023, BCFSA launched a consultation on proposed amendments to the Real Estate Services Rules (the “Rules”) for public and licensee comment.

BCFSA invited licensees, members of the public, and stakeholders to provide feedback on the proposed Rules amendments which are intended to update the real estate services Administrative Penalty Framework (Sections 26 and 27 of the Rules) in light of 2021 amendments to Sections 56 and 57 [Administrative Penalties] of RESA.

The consultation period closed on November 26, 2023. BCFSA thanks those who took the time to participate in the consultation. The consultation summary report provides a summary of feedback received as well as BCFSA’s response.

The Minister of finance has consented to the amendments, BCFSA intends to bring the Rules into force on July 1, 2024.

For more information, see:

• Consultations on Changes to BCFSA’s Administrative Penalty Framework Advisory
• Annotated Rules

• Updating RESA’s Administrative Penalty Framework Discussion Paper
• Consultation Summary Report
• New Administrative Penalty Rules Come Into Effect on July 1, 2024 Advisory

On October 24, 2023 BCFSA hosted a virtual information session for managing and associate brokers to learn more about the consultation on changes to BCFSA’s Administrative Penalty Framework.

• View Consultation Launch Webinar Recording
• View Presentation Slides

Phase 1: Administrative Penalties Technical Working Group (Complete)

As the first phase of its consultation approach, BCFSA established a Technical Working Group (“TWG”) of leaders from B.C. real estate organizations who provided feedback on proposed changes to the administrative penalty framework. TWG meetings took place in Spring 2023.

Further details regarding the goals and timelines for the TWG are available in the Terms of Reference.

Feedback from the Technical Working Group helped inform the development of the proposed Rules amendments released for consultation on September 27, 2023.

Technical Working Group Members

• British Columbia Real Estate Association
• Landlord BC
• Professional Association of Managing Agents
• Real Estate Brokers Association
• Real Estate Errors and Omissions Insurance Corporation

• Strata Property Agents of BC