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Information on Savings Institution Exemptions

Information on Savings Institution Exemptions

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Understanding Savings Institution Exemptions

In British Columbia, the provision of mortgage services is governed by the Mortgage Services Act (“MSA”), Mortgage Services Regulation (“Regulation”), and Mortgage Services Rules (“Rules”).

Anyone who wishes to provide mortgage services in B.C., or in relation to a property located in B.C., must be licensed under the MSA unless a licensing exemption applies. Additional details about licensing requirements can be found on BCFSA’s Mortgage Services Knowledge Base.

The information below explains the licensing exemptions that apply specifically to savings institutions who provide mortgage services.

In addition to any exemptions outlined in the Licensing Exemptions Regulatory Information, the following entities and individuals are not required to be licensed under the MSA:

  1. Savings institutions. This includes banks, credit unions, extra-provincial trust corporations authorized to carry on deposit business under the Financial Institutions Act, and subsidiaries of banks that are loan companies governed by the Trust and Loan Companies Act (Canada).
  2. Directors, officers, and employees of savings institutions. These individuals are exempt when they provide mortgage services on behalf of the savings institution.

Certain individuals working with a savings institution are considered independent contractors, not employees. This includes any individual, partnership, or corporation contracted by a savings institution to provide mortgage services on its behalf.

A person is also considered an independent contractor and not an employee of the savings institution if they:

  • Broker mortgages between borrowers and third-party lenders,
  • Lend their own mortgage funds, or
  • Operate under a business name other than the legal name of the savings institution.

Any independent contractor, or any individual deemed to be an independent contractor, must hold a valid licence under the MSA to provide mortgage services in B.C. Providing mortgage services without the required licence is a breach of the MSA and may lead to enforcement action.

More information on licensing requirements can be found on BCFSA’s Mortgage Services Knowledge Base.

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

MSA

s. 4 [Exemptions]

MSA Regulations

s. 3 [Exemption for certain registrants under Securities Act]

s. 4 [Exemption for licensees under Real Estate Services Act]

s. 5 [Exemption for reporting agencies under Business Practices and Consumer Protection Act]

s. 6 [Exemption for notaries]

s. 7 [Exemption for accountants]

s. 8 [Exemption for certain federally regulated entities]

s. 9 [Exemption for certain directors, officers and employees]

s. 10 [Exemption for individuals making referrals]