New Fee Rule related to non-qualified syndicated mortgages (subsection 6.3)
Mortgage Brokerages are required to provide disclosure information and related documentation to investors/lenders with respect to non-qualified syndicated mortgages pursuant to subsection 31.1(1) of Ontario Regulation 188/08.
Effective June 8, 2019, subsection 6.3 of FSRAs new Fee Rule requires that within five (5) days* after providing the prescribed disclosure to the first potential or actual investor in a non-qualified syndicated mortgage, Mortgage Brokerages have to:
- File with FSRA a completed and signed disclosure Form 3.2 - Disclosure Statement for Investor/Lender in a Non-qualified Syndicated Mortgage; and
- Pay a $200 fee.
The new fee is required as a result of the oversight activities required for non-qualified syndicated mortgage investments to help ensure consumers are protected.
The fee is payable to: Financial Services Regulatory Authority of Ontario and must be in the form of a cheque along with the completed disclosure Form 3.2. The payment and form should be mailed to:
Financial Services Regulatory Authority of Ontario
Market Conduct, 16th floor
5160 Yonge St
Toronto, ON, M2N 6L9
*For each of the non-qualified syndicated mortgages brokered between June 8, 2019 and August 13, 2019, the payment of the fee and Form 3.2 filing requirement are required to be completed by August 23, 2019. This grace period is a temporary exception. For non-qualified syndicated mortgages brokered after August 13th, the five-day timeline required by the Fee Rule is to be followed by all brokerages dealing in non-qualified syndicated mortgages.