The Financial Services Regulatory Authority of Ontario (FSRA) has provided an update for its intentions to provide burden reduction for syndicated mortgage investments.

While earlier introducing a new supervisory approach to higher-risk syndicated mortgages marketed to retail investors, the regulator is now introducing amended disclosure forms for non-qualified syndicated mortgages, aimed at reducing the regulatory burden when mortgage brokerages are working with more sophisticated investors, who are generally more knowledgeable and experienced with complex investments.

FSRA staff note that the amended forms do not reduce the amount of disclosure or the obligations of mortgage brokerages that are dealing with retail investors who may be less sophisticated in their investment knowledge. FSRA will periodically conduct reviews to assess compliance with requirements related to these investors and will take regulatory action where appropriate. 

FSRA staff also note that mortgage brokerages must make investors and the regulator aware of syndicated mortgages that bear the characteristics associated with a high-risk transaction. 

The complete text of the announcement can be found on the website of the Financial Services Regulatory Authority of Ontario.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.

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