The Financial Services Regulatory Authority of Ontario (FSRA) has released a proposed approach guidance, outlining its intentions with respect to how and when it will publish information about enforcement proceedings and investigations in the sectors it regulates, including the mortgage brokerage industry. The purpose of such publications are to inform the public about who is being sanctioned, but perhaps more importantly for discouraging similar behaviour, the conduct for which they are being sanctioned. Certain information would be made available on its web site and through news releases, including Notices of Proposal (e.g. to revoke a license) and Notices of Intended Decision when FSRA initiates an enforcement action for non-compliance with regulatory requirements and regulatory misconduct. The approach guidance also confirms that FSRA would not ordinarily disclose to the public the existence of an ongoing investigation, except in exceptional circumstances such as when there is credible evidence of ongoing behaviour that is likely to result in immediate harm to consumers. As set out in the notice, having a consistent and clear approach to transparency of enforcement is intended to result in even treatment for regulated entities and individuals, as they will know in advance when FSRA will let the public know it is taking action. The consultation period ends September 24, 2021.
August 31, 2021