Extension of Interim Compliance Order to Cease and Desist Unlicensed Activity Against Tier 1 Transaction Advisory Services Inc.

​REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29, in particular sections 2 and 35;


AND REGARDING Tier 1 Transaction Advisory Services Inc.

Extension of Interim Compliance Order to Cease and Desist Unlicensed Activity

On October 20, 2016, the Superintendent of Financial Services (“Superintendent”) issued an Interim Compliance Order to Cease and Desist Unlicensed Activity (the “Interim Order”) against Tier 1 Transaction Advisory Services Inc. (“Tier 1 Transaction”) pursuant to subsection 35(7) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the “Act”). The Interim Order required Tier 1 Transaction to:

 

  1. Immediately cease soliciting persons or entities to borrow or lend money on the security of real property in Ontario, or holding itself out as doing so;
  2. Immediately cease providing information about a prospective borrower to a prospective mortgage lender or holding itself out as doing so, in respect of real property in Ontario;
  3. Immediately cease negotiating or arranging a mortgage in respect of real property in Ontario on behalf of another person or entity, or attempting or holding itself out as doing so;
  4. Immediately cease accepting any fees or funds in connection with the solicitation, negotiation, or arrangement of a mortgage in respect of real property in Ontario;
  5. Immediately cease using a description that might reasonably be expected to lead to the belief that it is a mortgage brokerage in respect of real property in Ontario;
  6. Immediately cease advertising as a mortgage brokerage or as associated with a mortgage brokerage in Ontario;
  7. Immediately cease making any claims or representations in relation to mortgages that are false or misleading; and
  8. Immediately notify all entities and individuals with whom Tier 1 Transaction Advisory Services Inc. has a referral arrangement of this Interim Compliance Order and that Tier 1 Transaction Advisory Services Inc. is prohibited from paying any referral and/or other fees.

On the same day, the Superintendent issued a Notice of Proposal to make a permanent compliance order against Tier 1 Transaction and to refuse the mortgage brokerage licence application of Tier 1 Transaction (the “Notice”).


On November 3, 2016, Tier 1 Transaction filed a Request for Hearing with the Financial Services Tribunal (”the “Tribunal”) in respect of the Notice.


Pursuant to subsection 35(10) of the Act, as Tier 1 Transaction has requested a hearing before the Tribunal, the Superintendent may extend the Interim Order until the proposal is finally determined.


For the reasons set out in the Interim Order, the Superintendent continues to be of the opinion that the interests of the public may be adversely affected by any delay in the imposition of a permanent order to cease and desist unlicensed activity against Tier 1 Transaction.


TAKE NOTICE THAT pursuant to subsection 35(10) of the Act, the Interim Compliance Order to Cease and Desist Unlicensed Activity dated October 20, 2016 is extended until the proposal in the Notice dated October 20, 2016 is finally determined.


AND TAKE NOTICE THAT pursuant to subsections 48(4) and 49(1) of the Act, every person who fails to comply with an order made under this Act is guilty of an offence and every person convicted of an offence under the Act is liable to a fine of not more than $100,000 or to imprisonment for a term of not more than one year or both a fine and imprisonment. 


AND TAKE NOTICE THAT pursuant to subsection 48(5) and 49(2) of the Act, if a corporation commits an offence under the Act, every director or officer of a corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence, or who failed to take reasonable care to prevent the corporation from committing the offence, is guilty of an offence, whether or not the corporation is prosecuted or convicted, and liable to a fine of not more than $200,000.00.


Si vous désirez recevoir cet ordre en français, veuillez envoyer votre demande immédiatement à: Adjointe, audiences, Greffe, Commission des services financiers de l’Ontario, 5160 rue Yonge, 14em, Toronto ON M2N 6L9.


ISSUED at the City of Toronto, Ontario, November 8, 2016.


Original signed by “Brian Mills”
______________________________
Brian Mills
Superintendent of Financial Services