Brokerages to Benefit from Online Filing of Compliance Audit forms

RECA is pleased to be introducing online filing for compliance audit forms in 2009.

Mortgage brokerages with a fiscal year-end of December or January will be the first to test-drive the new online filing system, and have recently received communication from RECA with all of the details. The first form that it will be possible for brokerages to file online is Form 4, Declaration of Absence of Trust Transactions. The ability to file other compliance audit forms online will follow, later in 2009.

The ability to file compliance audit forms online will have many benefits for brokerages. It will:

• Eliminate the chance of a brokerage reporting via an obsolete form.
• Reduce the instances of incomplete forms and/or forms containing errors, as a form will not be accepted by the online filing system if it is not filled out completely or correctly.
• Eliminate disputes that arise out of reports that have been lost in transit, or because of the report/declaration delivery date, or in relation to proof of delivery, as the RECA Online system will provide the broker with confirmation of receipt.
• Avoid mail or courier costs.
• Make it easier for brokerages and their accountants to comply with legislated fiscal year-end reports.
• Make it easier for brokers to update trust account reporting requirements.
• Increase the timeliness of year-end reports, by providing multiple email reminders to brokers/brokerages during the 90-day submission period.

Brokerages will use the RECA Online system for filing completed compliance audit forms. The vast majority of brokers are already familiar with the RECA Online system as it is the licensing system brokers use to register, cancel and transfer industry members.

Additional features will be incorporated into the RECA Online system so that it can accept and process compliance audit forms efficiently and effectively. The RECA Online system will:

• Send out automatic email reminders to brokers when their compliance audit reporting is due, this should reduce the number of administrative penalties issued for failing to file compliance audit reports on time.
• Partially pre-populate forms with brokerage details, which will make filling out the form quicker.
• Allow brokerages with trust accounts to add and delete accounts during the year as they occur (this will meet the requirements of notifying the executive director in Real Estate Act Rule 32(c)).
• Prompt for completeness issues on forms to reduce the number having to be resubmitted.
• Send confirmation to a brokerage that a filed compliance audit form has been successfully received by RECA.

Additionally, with the online filing system, there will no longer be a requirement to have the Declaration of Absence of Trust Transactions form commissioned and real estate brokerages will no longer have to complete the Declaration of Brokerage Banking Information form for the Alberta Real Estate Foundation.

Online filing of compliance audit forms is expected to be available – and mandatory – for all brokerages before the end of 2009.

 

 

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