Proposed amendments to O. Reg. 188/08 (Mortgage Brokerages: Standards of Practice) are required to remove certain requirements on all non-qualified syndicated mortgages. These amendments will also streamline remaining obligations for non-qualified syndicated mortgages that will remain under FSRA's authority. The proposed changes would include:- Adding a definition for Permitted Clients, a class that includes most institutions, corporations, and high net-worth individuals (over $5 million in assets). Non-qualified syndicated mortgage transactions with solely permitted clients will remain under FSRA's regulatory oversight; - Removing various disclosure requirements for Permitted Clients in relation to transactions involving non-qualified syndicated mortgages to appropriately reduce regulatory burden on sophisticated entities.Proposed amendments to O. Reg. 407/07 (Exemptions from the Requirements to be Licensed), which would exempt securities dealers from licensing requirements under the MBLAA when they are dealing and trading in syndicated mortgage investments with non-permitted client investors.
The proposed regulatory amendments would provide significant regulatory burden reduction for sophisticated entities that are Permitted Clients, such as banks, pension plans, and other corporations, when transacting in non-qualified syndicated mortgage investments.