Regulatory Statement

Purpose

This Regulatory Statement (Statement) provides the requirements for principal broker absences, under the Mortgage Services Act (MSA), MSA Regulation (Regulation), and MSA Rules (Rules).

This Regulatory 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

Section 10 of the MSA requires a mortgage brokerage to have one or more principal brokers. A principal broker is licensed in relation to a brokerage and responsible for:

• The rights conferred on the mortgage brokerage by its licence,
• The duties imposed on the mortgage brokerage by its licence, and
• The control and conduct of the mortgage brokerage’s mortgage business, including supervision of the mortgage brokers who are also licensed in relation to the mortgage brokerage.

Section 3 of the Rules allows for an exemption of Section 10 of the MSA in certain situations, including where the Superintendent has granted permission.

Requirements

Section 32(1) of the Rules sets out key principal brokers responsibilities, including:

• Being actively engaged in the management of the principal broker’s related brokerage,
• Ensuring that the business of the brokerage is carried out competently and in accordance with MSA, its Regulation, the Rules, and the brokerage’s governance policy, and
• Ensuring that there is an adequate level of supervision for related mortgage brokers and for employees and others who perform duties on behalf of the brokerage.

Principal brokers remain responsible for their related brokerage, regardless of whether they are physically present at the brokerage or providing remote supervision, including during temporary absences (e.g., vacations or other leaves, etc.) or when they have temporarily delegated their duties to another person.

Principal Broker Absences – 30 days or less

Where a principal broker will be absent from the brokerage for 30 days or less, they are required to continue to actively oversee the activities of the brokerage, via electronic or other means. Principal brokers must continue to ensure an adequate level of supervision of the brokerage’s brokers and unlicensed staff.

Where this is not possible, principal brokers must delegate their duties to an appropriately experienced licensee¹, who must be licensed at the same brokerage, and preferably to another principal broker (where possible).

Principal Broker Absences – more than 30 days

Where a principal broker will be absent from the brokerage for more than 30 days or where the length of time is undetermined, principal brokers are required to either:

• Arrange for another individual to become licensed as a principal broker at the brokerage and assume principal broker duties during the absence. This may include a mortgage broker already licensed at the brokerage upgrading their licence to a principal broker licence; or,
• Advise BCFSA’s licensing department by email how the principal broker intends to maintain active control of the brokerage during their absence. BCFSA will review the plan and advise the principal broker in writing as to whether a replacement principal broker will be required.

Legislation

MSA s. 10
MSA Rules ss. 3 and 32.
Copies of the legislation are available from www.bclaws.gov.bc.ca

Additional Information

For inquires, please email msa@bcfsa.ca.