When FSRA Proposes Action Against Your Licence
This page is for individuals and businesses licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA). FSRA’s Chief Executive Officer (CEO) can propose to refuse, suspend, revoke or attach conditions to your licence, order you to stop conduct, or impose administrative penalties. Challenges are heard by the Financial Services Tribunal (FST), not the Licence Appeal Tribunal.
Illustrative example, not an actual FSRA notice
“Take notice that the Chief Executive Officer proposes to revoke your mortgage agent licence and to impose an administrative penalty, for the reasons set out in this notice. You may request a hearing before the Financial Services Tribunal by delivering a written request within 15 days after you receive this notice.”
FSRA publishes its enforcement actions, including Notices of Proposal, in a public online database, so a proposal may become public before any hearing.
Who Investigates and Who Decides
- Regulator
- FSRA, acting through its Chief Executive Officer under the MBLAA.
- Who investigates
- FSRA staff, through inquiries, examinations and inspection orders (MBLAA, ss. 30–32).
- Who decides
- The CEO proposes action. If you request a hearing, the Financial Services Tribunal decides. The FST may direct the CEO to carry out the proposal, with or without changes, substitute its own opinion, and impose conditions (s. 21(4)).
- Who hears appeals
- The Divisional Court hears appeals from FST orders under the Act (s. 21(5)).
Agents and brokers versus brokerages and administrators
Individual agents and brokers are judged on their own suitability and compliance. Brokerages and administrators also answer for their systems, supervision and record keeping. The maximum administrative penalty reflects this: up to $100,000 for an individual agent or broker, and up to $500,000 for a brokerage or administrator, or any lesser prescribed amount (MBLAA, s. 41).
Common Issues in Mortgage Licensing Investigations
Suitability and honesty
Undisclosed charges, bankruptcies or past regulatory history, and inaccurate licence applications. Suitability is a ground for suspension or revocation (MBLAA, s. 18(1)(b)).
Mortgage fraud red flags
Falsified income or employment documents, straw buyers, and failing to verify borrower information.
Disclosure and suitability
Not disclosing conflicts, fees or risks, or placing borrowers or investors in unsuitable mortgages, including private and syndicated mortgages.
Unlicensed activity
Dealing or trading in mortgages without the right licence, or for a brokerage you are not authorized with.
Brokerage compliance
Supervision, record keeping and policies, which can lead to a compliance order (s. 35) or penalties.
What Can Happen Next
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Notice of Proposal
The CEO must give written notice and reasons before refusing, suspending or revoking a licence, imposing or amending conditions without consent, or refusing to renew (MBLAA, s. 21(1)–(2)).
Deadline
The FST must hold a hearing if you request one in writing within 15 days after the notice is received (MBLAA, s. 21(3)). The same 15-day rule applies to proposed compliance orders and administrative penalties (ss. 35(4), 39(5)). The FST’s Form 1 is used to request a hearing about a Notice of Proposal. If no hearing is requested in time, the CEO may carry out the proposal (s. 21(7)).
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Interim suspension or revocation
If the CEO believes the public interest may be adversely affected by delay, the CEO can suspend or revoke a licence by interim order without waiting for the hearing process. The order takes effect immediately and lasts until the period for requesting a hearing on the proposal expires. If you request a hearing, the CEO may extend it until the proposal is finally decided (MBLAA, ss. 18(3)–(6), 19(3)–(4)). It also expires early if the Notice of Proposal is not given within the prescribed period (s. 18(5)).
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Administrative penalties
The CEO may propose a penalty for a contravention, but must give notice within two years after becoming aware of it (MBLAA, s. 39(4)). Some summary penalties are imposed by order and can be appealed to the FST within 15 days after you receive the order (s. 40(4)).
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Hearing and appeal
The FST may confirm, change or replace the CEO’s proposal and attach conditions. A party may appeal the FST’s order to the Divisional Court (MBLAA, s. 21(5)). The FST’s order takes effect immediately, but the FST may stay it until the appeal is decided (s. 21(6)).
Checklist: Responding to an FSRA Notice
Documents to gather
- The Notice of Proposal or order, and proof of the date you received it
- Your licence application and renewal answers
- Deal files: borrower documents, verification steps, disclosure forms and lender submissions
- Communications with borrowers, investors, lenders and your brokerage
- Brokerage policies, supervision records and compliance reports
Details to check in the notice
- What is proposed: licence action, compliance order, penalty, or a combination
- The date you received the notice, and your 15-day window
- Whether an interim order is already in effect
- Whether you, your brokerage, or both are named
Rules and resources to consult
- Mortgage Brokerages, Lenders and Administrators Act, 2006, ss. 18–22, 30–41
- MBLAA regulations on conduct, disclosure and suitability
- FSRA guidance for the mortgage sector
- Financial Services Tribunal rules and Form 1 (Request for Hearing)
Frequently Asked Questions
Is the 15 days counted from when FSRA sent the notice?
The MBLAA counts from when the notice is received (s. 21(3)). Keep proof of when it arrived, and do not wait until the last day.
Can I keep working while I challenge a proposal?
A proposal alone does not suspend your licence, but an interim order can take effect immediately and may be extended until the hearing is decided (ss. 18(3)–(6), 19(3)–(4)). Check whether your notice includes one.
Will this be public?
FSRA publishes enforcement actions, including Notices of Proposal, in its public enforcement database.
Sources
Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.
- Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29, ss. 18–22, 35, 39–41 — e-Laws consolidation period beginning April 29, 2022; checked November 10, 2026.
- Financial Services Tribunal Act, 2017 (FST orders final unless the governing Act provides an appeal) — Checked November 10, 2026.
- Financial Services Tribunal, “Forms” (Form 1: Request for Hearing; Form 2: Notice of Appeal) — Checked November 10, 2026.
- FSRA, “Protecting the public and deterring bad behaviour” (public enforcement database) — Checked November 10, 2026.