Regulator crackdown on industry malpractice continues
Ontario’s financial services regulator last week concluded enforcement action against mortgage agent Viviana Prentice, imposing a $30,000 administrative penalty and conditions on her licence.
On December 3, 2024, the Financial Services Regulatory Authority of Ontario (FSRA) issued a notice of proposal against Prentice, alleging she contravened the Mortgage Brokerages, Lenders and Administrators Act, 2006. FSRA said Prentice received remuneration from a person other than her brokerage, contrary to section 4(1) of Ontario Regulation 187/08.
Prentice had been licensed through Mortgage Connection and charged certain clients a fee that was agreed by the customer, signed via Direction of Funds Agreements, and paid directly to Prentice or channelled through legal representatives.
She was paid $34,050 in fees directly from clients or their legal representatives in 10 separate mortgage transactions, FSRA said, with the fees not remitted through the brokerage. Mortgage Connection retained 15% of fees received per the terms of Prentice’s agreement with the company, meaning Prentice benefited in the amount of $5,107.50.
Prentice was terminated by Mortgage Connection on January 16, 2023 when the brokerage discovered the fees. She was interviewed by FSRA investigators in August 2024, admitting she had breached the Act and took responsibility for her conduct.
At that time, the regulator proposed revoking Prentice’s mortgage agent licence and imposing administrative penalties totalling $50,000. Prentice requested a hearing before the Financial Services Tribunal in response to the proposal, but withdrew that request on July 24 of this year.
What are your thoughts on the recent announcement? Share your insights in the comments below.
