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This form may be used for strata managers to disclose any payments and benefits they may receive.
As a strata manager, you have a duty to make sure that your clients have the information they need to make good decisions. This includes making required disclosures about any fees or benefits received from someone other than your client as a result of providing strata management services on their behalf.
Now, BCFSA has made it easier for strata managers like you to ensure that your clients are getting the information they need. Our new Payments and Benefits Disclosure Information for Strata Corporations form replaces two previous forms (the “Disclosure of Remuneration: Strata Management Services” and the “Disclosure of Benefits: Rental and Strata Property Management Services”). And it includes an information page clearly explaining the disclosure to your clients.
By using the Payments and Benefits Disclosure Information for Strata Corporations form, your clients will know why they are receiving a disclosure from you, and why it is important for them to pay attention to the information. They’ll feel better informed, and better prepared to make decisions on behalf of the strata corporation.
When you or your brokerage receives or anticipates receiving remuneration (either directly or indirectly) from someone other than your client for providing strata management services to or on their behalf, you must promptly disclose it in writing. The Payments and Benefits Disclosure Information for Strata Corporations form helps you provide clear information to clients about:
- the source of the remuneration
- the amount of remuneration to be received
- all other relevant facts relating to the payment.
You must also disclose any direct or indirect benefit you receive or expect to receive from making an expenditure on behalf of your client. This information must be disclosed before the benefit is accepted. The Payments and Benefits Disclosure Information for Strata Corporations form helps clients to see at a glance whether a benefit is:
- any other type of benefit.
These disclosure requirements also apply any time that an associate or affiliate of you or your brokerage receives or anticipates receiving remuneration from someone other than your client as a result of the strata management services provided on their behalf.
The Payments and Benefits Disclosure Information for Strata Corporations form is a useful tool to help ensure you make the required disclosures to your clients in a timely manner. You should review your service agreements and related contracts annually for changes related to remuneration and benefits from third parties that will need to be disclosed to your client.
In any of the situations below, BCFSA recommends you use the Payments and Benefits Disclosure Information for Strata Corporations form so that the disclosure can be easily understood.
It is good practice to provide the strata council/section executive with a completed disclosure form early in the new year that identifies the remuneration you expect to receive for the year ahead. Even if your expected remuneration is relatively stable year to year, strata council and section executive members can change every year and may not have reviewed prior disclosures. It is important to ensure that strata council/section executive members are well informed about any payments or benefits you receive or expect, including those that have been previously disclosed.
If new payments or benefits are received or expected during the year, you must disclose them promptly in writing to the strata council/section executive. When you anticipate receiving a benefit as a result of making an expenditure on behalf of your strata council client, the disclosure must be made prior to accepting the benefit.
You should complete an “end of year” written disclosure identifying the total amount of remuneration/benefits actually received over the course of the year, including variable amounts such as Forms B and F, rush fees, etc.
For more information about the Payments and Benefits Disclosure Information for Strata Corporations form, or about the requirements to make disclosures to your clients, visit the BCFSA website where you will find resources such as this article on Required Disclosures.