Guideline on General Brokerage Reporting Requirements for In-Flight Files during the Transition from MBA to MSA

Understanding Requirements for In-Flight Files

The provision of mortgage services in B.C. is governed by the Mortgage Services Act (“MSA”), Mortgage Services Regulation (“Regulation”), and Mortgage Services Rules (“Rules”). The information below explains key reporting and compliance requirements for in-flight files, during the transition from the Mortgage Brokers Act (MBA) to the MSA, which comes into force on October 13, 2026.

In-flight files refer to mortgage transactions or client engagements that are initiated under the MBA but remain active, unresolved, or incomplete as of the MSA coming into force on October 13, 2026. These may include, but are not limited to:

• Mortgage applications submitted prior to October 13, 2026, that have not yet reached final approval or funding;

• Ongoing client engagements initiated under the MBA; and,

• Transactions where contractual obligations, disclosures, or regulatory requirements under the MBA are still being fulfilled or processed.

General Brokerage Reporting Requirements

Registrants under the MBA with in-flight files that began before October 13, 2026, and continue beyond that date must comply with the brokerage reporting requirements of the MSA, its Regulation, and Rules, once the MSA comes into force.

Under the MSA, mortgage brokerages may be required to submit reports to BCFSA, including the following:

• Accountant’s Report; 
• Trust Account Declaration; 
• Financial Statements;
• Brokerage Financial Information Filing; and/or 
• Periodic Activity Report.  

More information on reporting requirements under the MSA can be found on BCFSA’s Mortgage Services Knowledge Base.

Financial Filings

With the MSA taking effect on October 13, 2026, registrants’ filing requirements will differ depending on their fiscal year-end date:

• If a registrant’s fiscal year‑end falls on or before October 12, 2026, all filing requirements must be completed in accordance with the MBA.
• If a registrant’s fiscal year‑end falls on or after October 13, 2026, all filing requirements must be completed in accordance with the MSA.

Financial Filings under the MBA

As background, registrants under the MBA have different filing obligations depending on whether they handle a trust account:

• Registrants who handle a trust account must file a Form 15 – Accountant’s Report within 120 days of their fiscal year‑end.
• Registrants who do not handle a trust account must file a Form 12 – Statutory Declaration Respecting Absence of Trust Transactions within 30 days of their fiscal year‑end.

Financial Filings under the MSA

Key financial filings under the MSA are described below.

Annual Financial Statements and Annual Accountant’s Report

Mortgage brokerages that administer mortgages, provide mortgage lending, or maintain a trust account, are required to submit annual financial statements for the fiscal year. These financial statements must be filed within 120 days following the conclusion of each fiscal year. Mortgage brokerages that administer mortgages, provide mortgage lending, or maintain a trust account are also required to submit an annual accountant’s report for that fiscal year to BCFSA, within 120 days of the fiscal year of the mortgage brokerage.

If a mortgage brokerage is a public company as defined by the Business Corporations Act, its annual financial statements must be audited by an accountant. Otherwise, annual financial statements must, at a minimum, be subject to a review engagement by an accountant or, in certain circumstances, a compilation engagement report prepared by an accountant.

The ability to file financial statements that have been subject to a compilation engagement report is limited. BCFSA may only authorize a mortgage brokerage to file financial statements that have been subject to a compilation engagement report prepared by an accountant if all of the following conditions are met:

• The brokerage has filed financial statements for the last three consecutive fiscal years that are compliant with the Rules;
• There have not been any major trust account or general books and records issues during the aforementioned three consecutive fiscal years; and
• At the end of each of the aforementioned three consecutive fiscal years, the brokerage’s current assets exceed its current liabilities.

An accountant who performs an audit, reviews the financial statements, or prepares a compilation engagement report must be independent of the mortgage brokerage, any of its related licensees, controlling person(s), or significant interest holders.

If no trust money was held or received during the fiscal year, the mortgage brokerage may instead file a solemn declaration, in a form available through BCFSA for this purpose. The declaration should be applicable to the entire fiscal year or, if the mortgage brokerage carried on business only for a portion of the fiscal year, the part of the year during which the brokerage was in business.

Periodic Activity Report

Mortgage brokerages may also be required to submit periodic activity reports at intervals specified by BCFSA and in accordance with prescribed requirements. BCFSA will issue an advisory to principal brokers if a periodic activity report is requested.

For more information on MSA brokerage reporting requirements, see BCFSA’s Mortgage Services Knowledge Base.

Applicable Section of Mortgage Services Act, its Regulations, or the Mortgage Services Rules

MSA

s. 63(7) [Rules of the Authority]

MSA Rules

s. 32 [Mortgage broker responsibilities]

s. 33 [Duty to act with reasonable care and skill]

s. 38 [Duties to clients]

s. 83 [Superintendent review of accounts and other records]

s. 84 [Annual financial statements and accountant’s report]

s. 85 [Periodic report on mortgage brokerage activity]