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Transfer of Oversight of Syndicated Mortgages to OSC

Ontario Finance Minister Charles Sousa, delivered the 2017 Ontario Budget on April 27, 2017. The government announced that it plans to transfer regulatory oversight of syndicated mortgages from FSCO (Financial Services Commission of Ontario) to the Ontario Securities Commission. The government also announced that it planned on taking action to “strengthen protections for investors in syndicated mortgages”, such as establishing investment limits on these products and requiring mortgage brokerages to document assessments of product suitability for their clients. The Globe and Mail recently published an in-depth report looking at syndicated mortgages, noting the lack of oversight by the Ontario Securities Commission was a “loophole” and a “large reason why Ontario has become the centre of the Country’s burgeoning syndicated mortgage industry.” FAIR Canada commented in 2015 about the need for oversight of syndicated mortgages by the Ontario Securities Commission and mechanisms that should be built into the system to ensure effective oversight.