What is an administrative monetary penalty?
Subsection 7(4) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) and section 42 of Ontario Regulation 188/08 – Mortgage Brokerages: Standards of Practice require all licensed mortgage brokerages to have errors and omissions insurance at all times. An administrative monetary penalty may be imposed under section 39 of the MBLAA and Ontario Regulation 192/08, in order to promote compliance with requirements under the MBLAA and to prevent a person or entity from deriving, directly or indirectly, any economic benefit as a result of contravening or failing to comply with a requirement established under the MBLAA. Your mortgage brokerage has received an order to pay an administrative monetary penalty for not complying with the legal requirement to have errors and omissions insurance. It is an order of the Superintendent of the Financial Services Commission of Ontario (FSCO). FSCO is responsible for the regulation of the mortgage brokering industry. You will be invoiced
