Advisory

Purpose

BC Financial Services Authority is issuing this Advisory to notify licensees that amendments to the Real Estate Services Rules (the “Rules”) respecting data collection, written disclosures, and record retention will come into effect on February 1, 2024.

Background Information

On February 1, 2024, BCFSA is bringing into force amendments to the Rules related to data collection, written disclosures, and record retention.

Under the new Rules, licensees will be required to:

• Report information to the Superintendent of Real Estate (“Superintendent”) on an ad hoc, periodic, and contingent basis as and when requested by the Superintendent;
• Make disclosures of conflicts of interest in writing and to retain such disclosures; and
• Retain copies of any offers prepared or received by, or on behalf of, a brokerage in relation to a real estate trade or prospective trade.

Data reporting requirements will be specified by the Superintendent at the time when the data is needed. For general data calls, specific requirements, including the form and content of the requested information, will be outlined in advance through regulatory statements issued by the Superintendent to licensees and brokerages.

Under the new Rules, licensees, including brokerages, are required to provide requested data to the Superintendent. This requirement authorizes licensees, including brokerages, to disclose needed information, which may include personal information such as property addresses, to the Superintendent under Section 18(1)(o) of the Personal Information Protection Act.

BCFSA requires industry data to support its effective oversight of the financial services sector. Collecting additional information about real estate services and brokerage activities will support a strengthened basis for evidence-informed policy and regulatory decision-making. This will enable BCFSA to better assess market practices, compare year-over-year trends in market conditions, and evaluate policy or legislative changes in relation to the real estate segment and the overall financial services sector. Relevant data also helps to support investigations and ensure that the highest standards are being upheld for real estate licensees, which strengthens public confidence.

BCFSA is governed by the Freedom of Information and Protection of Privacy Act, which sets limitations and requirements related to BCFSA’s collection, disclosure, and use of personal information. For additional information on how BCFSA complies with these requirements, please visit BCFSA’s Privacy Policy.

Additional Information

The Rules related to data collection, written disclosures, and record retention received Ministerial consent after BCFSA undertook a comprehensive public consultation between June 26, 2023, and August 27, 2023, in accordance with the requirements under the Financial Services Authority Rule-Making Procedure Regulation, on the proposed Rules amendments. To see what participants had to say and to learn how BCFSA raised awareness of the consultation opportunity, please see the Consultation Summary Report. The Deposited Rules are available on our website.

Licensees with questions about the new Rules may contact a Practice Standards Advisor for more information. BCFSA will also publish information to support implementation of the new Rules in the Real Estate Knowledge Base prior to the new Rules coming into force.

• 2024 Brokerage Data Call

  BCFSA intends to conduct a mandatory brokerage data call in February 2024 to collect information on residential real estate sales. This data call will be similar in scope to the 2022 and 2023 data calls. More details about the 2024 brokerage data call will be distributed in the near term.