Regulatory Statement

Purpose

This Regulatory Statement (Statement) provides the required form and content for disclosure of conflicts of interests, disclosure of risks of dual agency, and the agreement regarding conflict of interest between clients, as provided under the Mortgage Services Act (MSA), Mortgage Services Regulation (Regulation), and Mortgage Services Rules (Rules).

This Statement comes into effect on October 13, 2026, and repeals all regulatory statements related to this topic under the previous Mortgage Brokers Act.

Background information

Mortgage services licensees have a duty to clients to take reasonable steps to avoid any conflict of interest, as per s. 38(g) of the Rules. If they are unable to avoid a potential conflict, they must promptly and fully disclose it to their client in a form approved by the Superintendent of Mortgage Services (Superintendent), as required under s. 38(h) of the Rules.

Aside from duties they owe to clients, s. 74 of the Rules requires licensees to disclose to all borrowers any direct or indirect interest they or any “associate” or “related party” (defined in s. 1 of the Rules) of theirs has or may acquire in the transaction in a form approved by the Superintendent.

Similarly, s. 75 of the Rules requires licensees to disclose to all lenders any direct or indirect interest they or any “associate” or “related party” of theirs has or may acquire in the transaction in a form approved by the Superintendent.

Dual agency is prohibited except in limited circumstances, as set out in sections 76 – 78 of the Rules. If an exemption exists, licensees must disclose the risks of proceeding in a dual agency relationship in a form approved by the Superintendent. If an exemption does not exist, the licensee must cease acting for one or more clients in an agreement set out in a form approved by the Superintendent.

Requirements

Conflict of interest to borrowers

If a licensee (or any associate/related party of the licensee) has or may acquire a direct or indirect interest in a mortgage transaction, they must provide the borrowers with Form 3A – Disclosure of Interests to Borrower (Form 3A).

Licensees may also choose to provide disclosure of interests in a Forms Package #1: Disclosure to Represented Borrowers or a Forms Package #3: Disclosure to Unrepresented Borrowers, as appropriate in the circumstances. For more information on forms packages, please see the Disclosures: Representation and Form Packages Regulatory Statement.  

The mortgage broker must provide Form 3A at the earliest possible opportunity, but no later than two business days before the borrower enters into a mortgage agreement or signs a mortgage instrument, whichever is earlier.

Borrowers must sign Forms 3A to acknowledge receipt. The licensee must keep a copy for their records and provide a copy to borrowers.

There are no exceptions to providing Form 3A; it must be provided in all mortgage transactions involving borrowers.

Conflict of interest to lenders

If a licensee (or any associate/related party of the licensee) has or may acquire an interest in a mortgage transaction, they must provide all prospective lenders with Form 3B – Disclosure of Interests to Lender (Form 3B).

Licensees may also choose to provide disclosure of interests in a Forms Package #2: Disclosure to Represented Lenders or a Forms Package #4: Disclosure to Unrepresented Lenders, as appropriate in the circumstances. For more information on Forms Packages, please see the Disclosures: Representation and Form Packages Regulatory Statement.  

A licensee must provide Form 3B to lenders at one of the following times, as applicable depending on the transaction:

• before delivering to a borrower the lender’s offer to lend
• before or at the time of delivering to the lender a borrower’s offer to borrow
• before delivering an offer by the lender to purchase an interest in a mortgage from a seller or
• before or at the time of delivering an offer to sell an interest in a mortgage to the lender

Lenders must sign Form 3B to acknowledge receipt. The licensee must keep a copy for their records and provide a copy to lenders.

There is one exception to Form 3B disclosure. Form 3B is not required if an offering memorandum or a prospectus has been provided to every lender under a mortgage in said transaction, in accordance with the B.C. Securities Act.

Disclosure of the risks of dual agency

Where an exemption to dual agency exists, licensees are required to make the disclosure of the risks associated with a dual agency relationship using the prescribed Form 8 — Disclosure of the Risks of Dual Agency.

Agreement regarding conflict of interest between clients

If the conflict between clients develops, and it does not qualify for an exception to the prohibition on dual agency, licensees must cease acting for one or more clients using the prescribed Form 9: Agreement Regarding Conflict of Interest Between Clients.

Approved disclosures

The table below provides the title, form number, and approved version of each disclosure of conflict of interest required under the Mortgage Services Rules. A version history can be found in the Appendix.

Form # and title	Approved form version and effective date	Applicable rules
Form 3A – Disclosure of Interests to Borrower	V1.0 October 13, 2026	s.74
Form 3B – Disclosure of Interests to Lender	V1.0 October 13, 2026	s.75
Form 8 — Disclosure of the Risks of Dual Agency	V1.0 October 13, 2026	s.77 and s.78
Form 9: Agreement Regarding Conflict of Interest Between Clients	V1.0 October 13, 2026	s.79

​​​Legislation

MSA Rules ss. 74, 75, 77, 78, and 79.

Copies of the legislation are available from www.bclaws.gov.bc.ca

Additional Information

For inquires on conflicts of interest and disclosures, please email msa@bcfsa.ca.

Appendix – version history

Form 3A – Disclosure of interests to borrower

Version	Effective date range	Description/summary of changes
1.0	Effective as of October 13, 2026	Initial version

Form 3B – Disclosure of interests to lender

Version	Effective date range	Description/summary of changes
1.0	Effective as of October 13, 2026	Initial version

Form 8 – Disclosure of the Risks of Dual Agency

Version	Effective date range	Description/summary of changes
1.0	Effective as of October 13, 2026	Initial version

Form 9 – Agreement Regarding Conflict of Interest Between Clients

Version	Effective date range	Description/summary of changes
1.0	Effective as of October 13, 2026	Initial version