Information on Winding Up a Brokerage

Understanding Winding Up Obligations

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). When a brokerage stops carrying on the business of providing mortgage services, it must “wind up” the business. The information below outlines brokerage duties and requirements when winding up a mortgage services brokerage.

Winding Up under the MBA Prior to MSA Coming into Force

The MSA comes into force on October 13, 2026. Until that time, registrants have obligations under the Mortgage Brokers Act (MBA) and its Regulation.

Under the MBA, a mortgage broker (referred to as a mortgage brokerage in the upcoming MSA) must promptly notify BCFSA when it stops carrying on business and begins winding up. The Designated Individual (under the MBA) notifies BCFSA by submitting Form 17 through IRIS. By completing this form, the Designated Individual confirms that the mortgage broker is not performing any activities that require registration and officially ends its registration under the MBA.

Remaining Obligations

Mortgage brokers that are winding up may still have outstanding obligations that require a registered mortgage broker to fulfill, such as client commitments or lenders with outstanding mortgages. The Designated Individual must ensure these are transferred to another registered mortgage broker under the MBA.

If any of these obligations will continue beyond October 13, 2026 (when the MSA comes into force), they must be assigned to a mortgage brokerage licensed under the MSA in the appropriate licensing category (more information on licensing levels and categories can be found on BCFSA’s Mortgage Services Knowledge Base). This transfer must be arranged in advance, where the brokerage that is winding up provides written consent to the receiving brokerage to authorize the transfer of files to the receiving brokerage, and the receiving brokerage consents to receiving and accepting the files and any outstanding obligations, before the application blackout period begins (set out below). These materials must be filed in accordance with MSA record keeping requirements, more information on which can be found on BCFA’s Mortgage Services Knowledge Base.

Application Blackout Dates

For registrants planning to wind up their mortgage broker business or restructure their operations ahead of the MSA coming into force, it’s important to be aware of key application blackout dates. During these periods, BCFSA will not process certain applications to allow for a smooth transition between the MBA and MSA.

To avoid delays or disruptions, registrants are strongly encouraged to submit any required applications well before these blackout dates.

Here are the blackout periods and the types of applications affected:

• New brokerage registration applications under MBA:
  ⟶ Blackout from April 13, 2026 to October 13, 2026
• Early registration renewal applications under MBA:
  ⟶ Blackout from July 20, 2026 to October 13, 2026
• Submortgage broker registration applications under the MBA:
  ⟶ Blackout from August 4, 2026 to October 13, 2026
• All other MBA-related applications:
  ⟶ Blackout from September 22, 2026 to October 13, 2026
• IRIS system shutdown (BCFSA’s online application portal):
  ⟶ Blackout from October 9, 2026 to October 13, 2026

Obligations Upon Winding Up under the MSA

A brokerage that ceases to carry on the business of providing mortgage services must do all of the following:

• Immediately surrender¹ the brokerage’s licences and the licences of all related licensees that are in the possession of the mortgage brokerage, to the Superintendent;
• Promptly submit a winding up report to the Superintendent (see “Winding Up Report” below for more information);
• Arrange for all records to be retained for at least seven years by
• another mortgage brokerage;
• an accountant, lawyer, or notary public; or
• another person acceptable to the Superintendent.

In addition to the above, the Superintendent may request further information, which must be provided to the Superintendent upon request. These include:

• Financial reports and/or financial records; and,
• Mortgage brokerage activity reports and/or further information about the business of the brokerage.

Temporary Licence

Temporary licences may be granted for executors, administrators, and committees of estates for the purpose of winding up the business of a mortgage brokerage on behalf of an individual who is deceased or incapacitated, for the purpose of transferring or selling the business. 

Winding Up Report

A brokerage that ceases to carry on the business of providing mortgage services must submit a winding up report to the Superintendent using the specified Winding Up Report Form, which requires the following:

• Legal name of the brokerage;
• Address of the brokerage head office and any branch offices;
• Name of the brokerage’s principal broker(s), and directors and officers (if applicable);
• Reason for winding up business;
• Contact information of the brokerage, accountant, lawyer, notary public, or Superintendent-approved person that will be responsible for holding the closing brokerage’s records for the following seven years;
• Effective date on which the brokerage will stop carrying on the business of providing mortgage services; and
• Information relating to each of the brokerage’s trust accounts, including for each account:  
• Account number;
• Name of the savings institution and the location of the branch with which the account was held;
• Type of trust account;
• Account balance; and
• Written confirmation (or a copy of the trust account statements) from the savings institution verifying that the trust account balances are as indicated in the winding up report. 

Trust Accounts

If the brokerage is authorized by BCFSA to hold a trust account, a certifying individual will be appointed as trustee of the brokerage’s trust accounts. This person is responsible for paying out all amounts held in trust and will immediately inform the Superintendent in writing (e.g. email), as each trust account balance reaches zero.   

Certifying Individual

The certifying individual, as referenced above, must certify the following:  

• The brokerage has ceased or will stop carrying on the business of providing mortgage services on the effective date indicated on the winding up report;
• The brokerage has given notice to all related licensees that:  
• The brokerage has stopped carrying on the business of providing mortgage services, and  
• The related licences of the licensees will become inoperative at that time, unless they are reinstated in accordance with the Rules and any applicable regulatory statements;
• The brokerage and all related licenses have been or will be immediately taken down and destroyed, and electronic versions will be deleted;
• That the certifying individual will act as trustee of the brokerage’s trust account and will pay out any and all amounts held in trust and will immediately inform BCFSA as each trust account balance reaches zero (except for unclaimed monies which have not been disbursed);
• That arrangements have been made for the brokerage records to be kept as required by the Rules;
• That any mortgage files that are not yet completed have been or will be transferred to a mortgage brokerage that is properly licensed to conduct such mortgage services, and that such transfers comply with all applicable requirements under the Mortgage Services Act and Rules;
• That BCFSA may require them to submit one or more of the financial statements and reports required under section 111 of the Mortgage Services Rules and any other information about the business and financial records of the mortgage brokerage that are requested by BCFSA; and
• That all information and statements in the winding up report are true and complete.

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

MSA Rules

s. 19 [Voluntary surrender]

s. 84(1) [Annual financial statements and accountant’s report]
s. 85 [Periodic report on mortgage brokerage activity]

s. 111 [Mortgage brokerage obligations when winding up business]

¹ A voluntary surrender under section 19 of the MSA Rules occurs when a licensee chooses to give up their license by handing it over to the Superintendent. Once surrendered, the licence becomes inactive and cannot be used unless the applicant applies through IRIS for the Superintendent to reactivate it before its expiration date.