REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 (the “Act”), in particular sections 38 and 39;
AND REGARDING SD Capital Management Ltd.
ORDER TO IMPOSE AN ADMINISTRATIVE PENALTY
SD Capital Management Ltd. (“SD Capital”) was licenced as a mortgage administrator under the Act (licence number 12695).
On April 4, 2018, the Superintendent of Financial Services (“Superintendent”) issued a Notice of Proposal to Impose an Administrative Penalty of $2,500 on SD Capital for contravening section 27 of Ontario Regulation 189/08. SD Capital failed to maintain the errors and omissions insurance coverage required by section 27 of Ontario Regulation 189/08 for approximately eight (8) months.
On April 10, 2018, SD Capital requested a hearing before the Financial Services Tribunal (“Tribunal”). The hearing was held in writing.
On January 10, 2019, the Tribunal found $1,500 was an appropriate administrative penalty to be imposed against SD Capital and directed the Superintendent to impose an administrative penalty of $1,500 against SD Capital, pursuant to subsection 39(6) of the Act.
Pursuant to section 39 of the Act, an administrative penalty of $1,500 is hereby imposed on SD Capital Management Ltd.
TAKE NOTICE THAT SD Capital will be receiving shortly an invoice from Ontario Shared Services, a part of the Ministry of Government and Consumer Services, with information as to where and how to make the payment. SD Capital must pay the administrative penalty no later than thirty (30) days after the date of the invoice.
If SD Capital fails to pay the administrative penalty in accordance with the terms of this Order, the Superintendent may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.
DATED at Toronto, Ontario, on the 25th day of January, 2019.
Original signed by
Executive Director, Licensing and Market Conduct Division
By delegated authority from the
Superintendent of Financial Services
© Queen's Printer for Ontario, 2019