Over the past year, the Real Estate Council of Alberta has worked extensively with the mortgage brokerage industry to develop a regulatory framework for licensed mortgage brokers who deal in syndicated mortgages. RECA wants to take this opportunity to thank all those brokerages and brokers that participated in these efforts, including the recent survey concerning syndicated mortgage activity in the province. Twenty-one brokerages responded to the survey, which covered the period from January 1, 2008 to December 31, 2008.

RECA’s syndicated mortgage survey was prompted by a proposal of the Alberta Securities Commission (ASC) that the exemption for the registration and prospectus requirements of the ASC of RECA mortgage broker industry members of individuals dealing in syndicated mortgages in Alberta be removed. Currently, the ASC has an exemption from its registration and prospectus requirements for those persons that are licensed with RECA as a mortgage broker and dealing in syndicated mortgages.

Notwithstanding efforts by RECA to seek an exemption for its industry members, the ASC has confirmed mortgage brokers licensed and regulated by RECA will also be subject to the regulatory requirements of the ASC with respect to syndicated mortgages effective September 29, 2009.

As a result of the decision of the ASC, Council will need to review its future role in the regulation of mortgage brokers who deal in syndicated mortgages. RECA will keep industry members informed of any changes that may occur in this regard.

RECA recommends any licensed mortgage broker who currently deals in syndicated mortgages, or who plans to deal in syndicated mortgages, familiarize themselves with the information posted on the Alberta Securities website at www.albertasecurities.com with respect to National Instrument 31-103 (Registration Requirement and Exemptions) and National Instrument 45-106 (Prospectus and Registration Exemptions) and related rules and amendments to both of these instruments. If you have any questions regarding how these regulations will affect your business, please contact the ASC or your lawyer.

 

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