Regulatory Statement

Purpose

This Regulatory Statement (Statement) provides the required form for disclosure of representation and disclosure of risks to unrepresented parties, as provided under the Mortgage Services Act (MSA), Mortgage Services Regulation (Regulation), and Mortgage Services Rules (Rules).

This Statement also authorizes licensees to provide a disclosure package instead of providing individual disclosure required under sections 70 – 75 of the 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

Under section 63 of the Rules, a licensee must not provide the mortgage services of dealing in or trading in mortgages unless they are representing a client in relation to that transaction.

Before providing dealing or trading in mortgage services, section 68(1) of the Rules requires a licensee to confirm if they will be representing a person as a client. Section 68(2) of the Rules requires that disclosure of client representation must be in a form approved by the Superintendent of Mortgage Services (Superintendent).

If a licensee provides dealing or trading in mortgage services to an unrepresented party, section 69(1) of the Rules requires the licensee to disclose the risks of remaining unrepresented in the mortgage transaction. Section 69(2) of the Rules requires that disclosure of risks to unpresented parties must be in a form approved by the Superintendent. 

Once a licensee has provided the applicable disclosures required under ss. 68 and 69, the licensee may proceed with providing mortgage services and the disclosures required under ss. 70–75 of the Rules.

To reduce duplication and simplify disclosure for both licensees and consumers, BCFSA has developed disclosure packages that consolidate the information required under sections 70–75 of the Rules (i.e., suitability and material risks, remuneration, lender information, and/or conflicts of interest) into a single document. 

A licensee is authorized to use a disclosure forms package only after providing the applicable disclosures required under ss. 68 and 69. The licensee must use the disclosure package that corresponds to the person’s role in the transaction and representation status.

If a mortgage is co-brokered, all licensees involved are responsible for providing the required disclosures and maintaining mortgage files for the required period.

Requirements: Disclosure of Representation

Licensees are required to make the disclosure establishing a client relationship using Form 1 — Disclosure of Representation.

Form 1 also sets out the agency model (i.e., brokerage agency or designated agency) the brokerage will provide services under. Pursuant to section 40 of the Rules, the mortgage brokerage and client can agree to a designated agency relationship.

There are three different versions of Form 1 depending on the service being provided (dealing or trading) and whether it is provided to the borrower or lender:

• Form 1A — Disclosure of Representation to Borrower (Dealing)
• Form 1B — Disclosure of Representation to Lender (Dealing)
• Form 1C — Disclosure of Representation to Lender (Trading)

Requirements: Disclosure of risks to unrepresented parties

Before providing mortgage services to someone who is not their client and is not represented by another licensee, the broker must provide Form 2 – Disclosure of Risks to Unrepresented Parties.   

There are three different versions of Form 2, depending on the service being provided (dealing or trading) and whether it is provided to the borrower or lender:  

• Form 2A — Disclosure of Risks to Unrepresented Borrower (Dealing)   

• Form 2B — Disclosure of Risks to Unrepresented Lender (Dealing)  

• Form 2C — Disclosure of Risks to Unrepresented Lender (Trading) 

Requirements: Disclosure Forms packages

After the broker has provided the required Form 1 or Form 2 disclosure, they may proceed with providing mortgage services and the other required disclosures.

Under sections 70–75 of the Rules, licensees must provide disclosures relating to:

• suitability and material risks (s. 70)
• remuneration (ss. 71 and 72)
• lender information (s. 73) and/or
• conflicts of interest (ss. 74 and 75)

Rather than providing each required disclosure separately, licensees may use the applicable disclosure forms package. The package used depends on whether the person is a borrower or lender, and whether they are represented or unrepresented.

BCFSA has developed and authorized the following disclosure forms packages:

• Forms Package #1: Disclosure to Represented Borrowers: combines sections 70, 71, 72, and 74 of the Rules

• Forms Package #2: Disclosure to Represented Lenders: combines sections 70, 71, 73, and 75 of the Rules

• Forms Package #3: Disclosure to Unrepresented Borrowers: combines sections 70, 72, and 74 of the Rules

• Forms Package #4: Disclosure to Unrepresented Lenders: combines sections 70, 73, and 75 of the Rules

Licensees must ensure they use the correct disclosure package.

If licensees provide the full disclosure forms package when they present mortgage/mortgage transaction options to the borrower or the lender, the licensee will meet all disclosure timelines set out in the Rules, with the following two exceptions:

• The financial disclosure for consumer mortgages (required under section 34 of the Rules and under the Business Practices and Consumer Protection Act). The financial disclosure for consumer mortgages is not included in any of the packages and must be made in accordance with the Business Practices and Consumer Protection Act
• Additional disclosure for construction and development mortgages. This disclosure is provided through Form 5A: Addendum for Construction and Development Mortgages and must be included with the applicable disclosure package provided to lenders, as applicable.

Definitions

Dealing in mortgages: Means performing any of the following activities or holding oneself out as doing so:

(a) soliciting another person to borrow or lend money on the security of real property;

(b) providing advice to a prospective borrower or lender about entering into a particular mortgage contract;

(c) providing information about a prospective borrower to a prospective lender of a mortgage, whether or not the lender is subject to this Act;

(d) assessing a prospective borrower on behalf of a prospective lender of a mortgage, whether or not the lender is subject to this Act;

(e) negotiating or arranging, or attempting to negotiate or arrange, a mortgage on behalf of another person;

(f) any other prescribed activities

Mortgage lending: means performing any of the following activities or holding oneself out as doing so:

(a) lending money on the security of real property;

(b) any other prescribed activities;

Permitted person: means any of the following:  

(a) the government of Canada or the government of a province or an agency of any of those governments; (b) a municipality, regional district, public board or commission in Canada;  

(c) a savings institution;  

(d) a cooperative credit society as defined in the Cooperative Credit Associations Act (Canada) or a financial services cooperative as defined in the Act Respecting Financial Services Cooperatives (Quebec); (e) the Business Development Bank of Canada;  

(f) a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada) or a provincial pension supervisory authority;  

(g) an insurance company;  

(h) a trust company or insurer authorized under the laws of Canada or of a province other than British Columbia to carry on business in Canada or that province;  

(i) a person registered under the Securities Act or the securities legislation of another province as a dealer or its equivalent, acting as principal or as an agent or trustee for accounts that are fully managed by the person;  

(j) a person registered under the Securities Act or the securities legislation of another province as a portfolio manager or its equivalent, acting as principal or as an agent or trustee for accounts that are fully managed by the person;  

(k) an investment fund, if the investment portfolio of the fund is managed by a person who is registered under the Securities Act or the securities legislation of another province as a portfolio manager or its equivalent;  

(l) a person or trust that acquires mortgages or interests in mortgages for the purpose of offering, as a security as defined in the Securities Act, interests in a pool of those mortgages or interests in mortgages; (m) a subsidiary, as defined in the Business Corporations Act, of a person or entity referred to in any of paragraphs (c) to (l);  

(n) a person or entity in a foreign jurisdiction that is analogous to an entity referred to in any of paragraphs (c) to (m);  

(o) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; 

Trading in mortgages: means performing any of the following activities or holding oneself out as doing so:

(a) soliciting another person to buy, sell or exchange mortgages;

(b) buying, selling or exchanging mortgages on behalf of another person;

(c) buying, selling or exchanging mortgages on the person’s own behalf;

(d) any other prescribed activities.

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 1A — Disclosure of Representation to Borrower	V1.0 October 13, 2026	s.40 and s.68
Form 1B — Disclosure of Representation to Lender	V1.0 October 13, 2026	s.40 and s.68
Form 1C — Disclosure of Representation to Lender	V1.0 October 13, 2026	s.40 and s.68
Form 2A — Disclosure of Risks to Unrepresented Borrower	V1.0 October 13, 2026	s.69
Form 2B — Disclosure of Risks to Unrepresented Lender	V1.0 October 13, 2026	s.69
Form 2C — Disclosure of Risks to Unrepresented Lender	V1.0 October 13, 2026	s.69
Forms Package #1: Disclosure to Represented Borrowers	V1.0 October 13, 2026	s.70, s.71, s.72 and s.74
Forms Package #2: Disclosure to Represented Lenders	V1.0 October 13, 2026	s.70, s.71, s.73 and s.75
Forms Package #3: Disclosure to Unrepresented Borrowers	V1.0 October 13, 2026	s.70, s.72 and s.74
Forms Package #4: Disclosure to Unrepresented Lenders	V1.0 October 13, 2026	s.70, s.73, and s.75

​​​Legislation

MSA

MSA Rules s. 40, 68 – 75

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

Additional Information

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

Appendix – version history

Form 1A — Disclosure of Representation to Borrower

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

Form 1B — Disclosure of Representation to Lender

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

Form 1C — Disclosure of Representation to Lender

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

Form 2A — Disclosure of Risks to Unrepresented Borrower

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

Form 2B — Disclosure of Risks to Unrepresented Lender

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

Form 2C — Disclosure of Risks to Unrepresented Lender

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

Forms Package #1: Disclosure to Represented Borrowers

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

Forms Package #2: Disclosure to Represented Lenders

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

Forms Package #3: Disclosure to Unrepresented Borrowers

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

Forms Package #4: Disclosure to Unrepresented Lenders

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