The Financial Services Regulatory Authority of Ontario (FSRA) announced on Thursday that it is allowing mortgage brokers to provide certain “sophisticated” investors with shorter versions of required disclosure for non-qualified syndicated mortgages.
Investors are considered sophisticated if they have at least $5 million in net financial assets.
“The amended forms do not reduce the amount of disclosure or the obligations of mortgage brokerages that are dealing with retail investors,” the FSRA said, adding that the forms “reflect feedback received through consultations with industry participants, who expressed support for reducing burden when mortgage brokerages are working with sophisticated investors.”
The regulator also noted that it will periodically carry out reviews to assess compliance with the requirements for non-sophisticated investors, and said it “will take regulatory action where appropriate.”