{"id":2406,"date":"2020-09-21T12:14:00","date_gmt":"2020-09-21T12:14:00","guid":{"rendered":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/"},"modified":"2024-03-14T18:45:19","modified_gmt":"2024-03-14T18:45:19","slug":"fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments","status":"publish","type":"post","link":"https:\/\/cfacanada.org\/fr\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/","title":{"rendered":"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments"},"content":{"rendered":"    <div class=\"hero hero--without-image hero-banner-block alignfull\">\n        <div class=\"hero__wrapper container\">\n            <div class=\"row justify-content-between align-items-center g-0\">\n                <div class=\"d-flex col-12\">\n                    <div class=\"hero__content\">\n                        <h1 class=\"hero__title\">FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments <\/h1>\n                                                                                            <\/div>\n                <\/div>\n                            <\/div>\n        <\/div>\n    <\/div>\n\n\n\n\n\n<h2 class=\"wp-block-heading\">Download PDF:<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.cfasociety.org\/canada\/Comment%20Letters\/2020\/FSRA%20Draft%20Approach%20to%20Syndicated%20Mortgages.pdf\"><a href=\"https:\/\/www.cfasociety.org\/canada\/Comment%20Letters\/2020\/FSRA%20Draft%20Approach%20to%20Syndicated%20Mortgages.pdf\">FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments\u00a0<\/a><\/a><\/p>\n\n\n\n<div style=\"height:32px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Letter Summary:<\/h2>\n\n\n\n<p>FSRA\u2019s draft approach guidance describes how the regulatory agency will supervise the activities of mortgage brokers and administrators dealing in certain syndicated mortgage investments post March, 2021 when the securities registration and prospectus exemptions currently available for trades in syndicated mortgages will be removed in Ontario and certain other jurisdictions. After the amendments, FSRA will remain responsible to supervise those who trade in mortgages, qualified syndicated mortgages and non-qualified syndicated mortgages where the investor\/lender is a permitted client. They will also regulate mortgage brokers dealing in non-qualified syndicated mortgages when they act on behalf of the borrower even if the investor\/lender is a non-permitted client in which case the trades will also be subject to supervision by the Ontario Securities Commission with respect to the investor\/lender. The objectives of FSRA\u2019s supervisory approach is to monitor and evaluate non-qualified syndicated mortgages with permitted clients through regular data collection and analysis, and ensure compliance with applicable brokerage legislation. Using the data and its other resources, FSRA will create risk profiles for each mortgage brokerage (and administrator) and target increased oversight where warranted. One focus will be the due diligence conducted by the brokerages to confirm the status of the investors\/lenders as permitted clients. Permitted clients may waive a suitability assessment, and non-individual permitted clients will be exempt from certain disclosure requirements, including disclosure of conflicts.<\/p>\n\n\n\n<p><br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overview of the Council&rsquo;s Comments:<\/h2>\n\n\n\n<p>We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties. Again, we believe that this definition should be standardized across all CSA jurisdictions relating to prospectus and registration exemptions. We note that the LTV threshold proposed by FSRA is 90% while other jurisdictions have suggested an 80% threshold. We are of the opinion that all the proposed thresholds are too high and should be reduced to 75% because of the decline of the value of property when a default occurs on a mortgage loan; and further because of the various costs associated with a foreclosure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Download PDF: FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments\u00a0 Letter Summary: FSRA\u2019s draft approach guidance describes how the regulatory agency will supervise the activities of mortgage brokers and administrators dealing in certain syndicated mortgage investments post March, 2021 when the securities registration and prospectus exemptions [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[122],"tags":[],"class_list":["post-2406","post","type-post","status-publish","format-standard","hentry","category-fsra-fr"],"acf":[],"featured_image_src":null,"author_info":{"display_name":"katie@sparkadvocacy.ca","author_link":"https:\/\/cfacanada.org\/fr\/author\/katiesparkadvocacy-ca\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments - CFA Societies Canada<\/title>\n<meta name=\"description\" content=\"We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments - CFA Societies Canada\" \/>\n<meta property=\"og:description\" content=\"We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/\" \/>\n<meta property=\"og:site_name\" content=\"CFA Societies Canada\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-21T12:14:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-14T18:45:19+00:00\" \/>\n<meta name=\"author\" content=\"katie@sparkadvocacy.ca\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"katie@sparkadvocacy.ca\" \/>\n\t<meta name=\"twitter:label2\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/\"},\"author\":{\"name\":\"katie@sparkadvocacy.ca\",\"@id\":\"https:\\\/\\\/cfacanada.org\\\/#\\\/schema\\\/person\\\/a8fc95d51265cf77f4cb4a4a64808ee9\"},\"headline\":\"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments\",\"datePublished\":\"2020-09-21T12:14:00+00:00\",\"dateModified\":\"2024-03-14T18:45:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/\"},\"wordCount\":416,\"articleSection\":[\"Autorit\u00e9 ontarienne de r\u00e9glementation des services financiers (ARSF)\"],\"inLanguage\":\"fr-FR\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/\",\"url\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/\",\"name\":\"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments - CFA Societies Canada\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cfacanada.org\\\/#website\"},\"datePublished\":\"2020-09-21T12:14:00+00:00\",\"dateModified\":\"2024-03-14T18:45:19+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/cfacanada.org\\\/#\\\/schema\\\/person\\\/a8fc95d51265cf77f4cb4a4a64808ee9\"},\"description\":\"We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/#breadcrumb\"},\"inLanguage\":\"fr-FR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/cfacanada.org\\\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/cfacanada.org\\\/fr\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/cfacanada.org\\\/#website\",\"url\":\"https:\\\/\\\/cfacanada.org\\\/\",\"name\":\"CFA Societies Canada\",\"description\":\"Canadian investment values\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/cfacanada.org\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-FR\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/cfacanada.org\\\/#\\\/schema\\\/person\\\/a8fc95d51265cf77f4cb4a4a64808ee9\",\"name\":\"katie@sparkadvocacy.ca\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-FR\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/638496ca638254401e2c207b0517a4c1a34cd012253fbb3303df8ad62636c4f6?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/638496ca638254401e2c207b0517a4c1a34cd012253fbb3303df8ad62636c4f6?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/638496ca638254401e2c207b0517a4c1a34cd012253fbb3303df8ad62636c4f6?s=96&d=mm&r=g\",\"caption\":\"katie@sparkadvocacy.ca\"},\"url\":\"https:\\\/\\\/cfacanada.org\\\/fr\\\/author\\\/katiesparkadvocacy-ca\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments - CFA Societies Canada","description":"We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/","og_locale":"fr_FR","og_type":"article","og_title":"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments - CFA Societies Canada","og_description":"We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties.","og_url":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/","og_site_name":"CFA Societies Canada","article_published_time":"2020-09-21T12:14:00+00:00","article_modified_time":"2024-03-14T18:45:19+00:00","author":"katie@sparkadvocacy.ca","twitter_card":"summary_large_image","twitter_misc":{"\u00c9crit par":"katie@sparkadvocacy.ca","Dur\u00e9e de lecture estim\u00e9e":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/#article","isPartOf":{"@id":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/"},"author":{"name":"katie@sparkadvocacy.ca","@id":"https:\/\/cfacanada.org\/#\/schema\/person\/a8fc95d51265cf77f4cb4a4a64808ee9"},"headline":"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments","datePublished":"2020-09-21T12:14:00+00:00","dateModified":"2024-03-14T18:45:19+00:00","mainEntityOfPage":{"@id":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/"},"wordCount":416,"articleSection":["Autorit\u00e9 ontarienne de r\u00e9glementation des services financiers (ARSF)"],"inLanguage":"fr-FR"},{"@type":"WebPage","@id":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/","url":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/","name":"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments - CFA Societies Canada","isPartOf":{"@id":"https:\/\/cfacanada.org\/#website"},"datePublished":"2020-09-21T12:14:00+00:00","dateModified":"2024-03-14T18:45:19+00:00","author":{"@id":"https:\/\/cfacanada.org\/#\/schema\/person\/a8fc95d51265cf77f4cb4a4a64808ee9"},"description":"We support FSRA\u2019s principles-based approach, and how it intends to utilize data to target supervision of higher-risk brokerages and administrators. It is important to harmonize the definition of \u201cpermitted client\u201d across the various regulations dealing with syndicated mortgages. Also, the definition of \u201cqualified syndicated mortgage\u201d is key, as it is intended to be limited to lower-risk mortgages primarily on residential properties.","breadcrumb":{"@id":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/#breadcrumb"},"inLanguage":"fr-FR","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/cfacanada.org\/fsra-supervision-approach-for-non-qualified-syndicated-mortgage-investments-with-permitted-clients-and-legacy-non-qualified-syndicated-mortgage-investments\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cfacanada.org\/fr\/"},{"@type":"ListItem","position":2,"name":"FSRA Supervision Approach for Non-Qualified Syndicated Mortgage Investments with Permitted Clients and Legacy Non-Qualified Syndicated Mortgage Investments"}]},{"@type":"WebSite","@id":"https:\/\/cfacanada.org\/#website","url":"https:\/\/cfacanada.org\/","name":"CFA Societies Canada","description":"Canadian investment values","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cfacanada.org\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-FR"},{"@type":"Person","@id":"https:\/\/cfacanada.org\/#\/schema\/person\/a8fc95d51265cf77f4cb4a4a64808ee9","name":"katie@sparkadvocacy.ca","image":{"@type":"ImageObject","inLanguage":"fr-FR","@id":"https:\/\/secure.gravatar.com\/avatar\/638496ca638254401e2c207b0517a4c1a34cd012253fbb3303df8ad62636c4f6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/638496ca638254401e2c207b0517a4c1a34cd012253fbb3303df8ad62636c4f6?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/638496ca638254401e2c207b0517a4c1a34cd012253fbb3303df8ad62636c4f6?s=96&d=mm&r=g","caption":"katie@sparkadvocacy.ca"},"url":"https:\/\/cfacanada.org\/fr\/author\/katiesparkadvocacy-ca\/"}]}},"_links":{"self":[{"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/posts\/2406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/comments?post=2406"}],"version-history":[{"count":0,"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/posts\/2406\/revisions"}],"wp:attachment":[{"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/media?parent=2406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/categories?post=2406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfacanada.org\/fr\/wp-json\/wp\/v2\/tags?post=2406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}