As readers of our bulletin know, the Financial Services Regulatory Authority of Ontario (FSRA) is a relatively new regulatory agency that, in 2019, took over regulatory oversight of mortgage brokers and administrators from the Financial Services Commission of Ontario. Earlier this month, FSRA announced that it was imposing a $250,000 penalty on Fortress Real Developments Inc. (Fortress) to settle enforcement proceedings against the firm. FSRA found that Fortress and its predecessor had been involved in helping borrowers raise more than $900 million in syndicated mortgage loans without being licensed to engage in such activity. This is one of the first administrative penalties FSRA has imposed on an entity and the largest administrative penalty it has imposed to date.
September 30, 2020