New Year, New Guidance from FSRA
FSRA recently updated its areas of focus for 2023/2024 – telling us what their primary emphasis is going to be in any review. Making sure that you’re covering off on these important details will help to ensure that you’re meeting FSRA standards, protecting you and the brokerage while ensuring you’ve done the best for your clients.
With specific emphasis on private mortgages, FSRA has emphasized the following points:
Brokerages have adequate know-your-client processes
Brokers and agents make suitable product recommendations
Brokers and agents provide sufficient disclosure about mortgage features and implications
There is adequate consideration of an exit strategy to ensure clients can transition back to more traditional financing
There is adequate disclosure and management of conflicts of interest.
An additional area of focus is around APR – expect FSRA to conduct a mass compliance blitz in late 2024-2025 with an emphasis on the APR for the files you’re doing now. If you have questions about specifics, please reach out to compliance@fcfunding.ca and we’ll help you sort out the details.
For the full FSRA statement with other pertinent insights, visit: