Principal Broker Regulations
made under Section 90 of the
Mortgage Regulation Act
S.N.S. 2012, c. 11
N.S. Reg. 122/2020 (effective November 1, 2021)
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
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Citation
Definitions
Prescribed criteria for designation as principal broker
Duties of principal broker
Citation
1 These regulations may be cited as the Principal Broker Regulations.
Definitions
2 In these regulations,
“Act” means the Mortgage Regulation Act;
“principal broker” means an individual required by the Act to be designated to
fulfill the duties set out in subsection 28(2) of the Act and in these regulations.
Prescribed criteria for designation as principal broker
3 All of the following are the criteria an individual is required to satisfy to be designated as
a principal broker under Section 28 of the Act:
(a) the individual is a licensed mortgage broker who is authorized by the
brokerage to broker mortgages on its behalf;
(b) the individual has the following status in relation to the mortgage brokerage:
(i) for a mortgage brokerage that is a corporation, the individual is a
director or officer of the corporation,
(ii) for a mortgage brokerage that is a partnership other than a limited
partnership, the individual is a partner,
(iii) for a mortgage brokerage that is a limited partnership, the individual
is a general partner or is a director or officer of a corporation that is a
general partner,
(iv) for a mortgage brokerage that is a sole proprietorship, the individual
is the sole proprietor;
(c) the individual has demonstrated competence to carry out the duties and
responsibilities of a principal broker on behalf of the mortgage brokerage.
Duties of principal broker
4 (1) In this Section,
“authorized mortgage broker” or “authorized associate mortgage broker”, in
relation to a mortgage brokerage, means a mortgage broker or associate mortgage
broker who is authorized by the brokerage to broker mortgages on its behalf.
(2) In addition to the duties set out in clauses 28(2)(a) to (c) of the Act, all of the
following are prescribed as duties of a principal broker:
(a) acting as a liaison or contact person with the Registrar for all matters
concerning the operation of the mortgage brokerage, including all of the
following:
(i) licensing matters,
(ii) complaints,
(iii) inspections,
(iv) responding to directions, orders, demands or requirements of the
Registrar,
(v) annual returns provided to the Registrar under Section 54 of the Act;
(b) establishing, maintaining and periodically reviewing policies and procedures
for the mortgage brokerage to assist the brokerage and each of its authorized
mortgage brokers and authorized associate mortgage brokers in complying
with the Act and its regulations;
(c) ensuring that
(i) each authorized mortgage broker and authorized associate mortgage
broker is competent to carry out their duties and responsibilities
under the Act and its regulations, and
(ii) each authorized associate mortgage broker is adequately supervised;
(d) ensuring that regular audits are carried out on the work of the mortgage
brokerage and of each authorized mortgage broker and authorized associate
mortgage broker, and investigate and respond to any complaints made to the
brokerage;
(e) advising the Registrar immediately on becoming aware of any contravention
of the Act or its regulations by the mortgage brokerage or an authorized
mortgage broker or authorized associate mortgage broker;
(f) advising the Registrar in writing immediately if any mortgage broker or
associate mortgage broker ceases to be authorized to broker mortgages on
behalf of the mortgage brokerage;
(g) ensuring that the mortgage brokerage immediately notifies the Registrar in
writing of any change to a business address, facsimile number or electronic
address provided in an application for a licence or licence renewal, as
required by Section 21 of the Act;
(h) ensuring that the mortgage brokerage notifies the Registrar in writing of any
change of circumstances as required by Section 22 of the Act in accordance
with, and within the time period prescribed by, the Reporting Requirements
Regulations made under the Act.
The following regulations are not yet in force and
are not included in the current consolidation: