As the principal broker, you are responsible for ensuring that your mortgage brokerage completes and submits the required Annual Information Return (AIR) no later than March 31st each year. This annual reporting requirement is mandatory for all licensed mortgage brokerages under Ontario Regulation 193/08 - Reporting Requirements for Licensees and section 29 of the Mortgage Brokerages, Lenders and Administrators Act, 2006 .
The AIR is designed to collect information from mortgage brokerages about their business practices, internal controls and market conditions in the previous year. The information is used to assist the Financial Services Commission of Ontario (FSCO) in its risk assessment and oversight of mortgage brokerages. The reporting period is January 1 to December 31, 2012.
Electronic filing (e-filing) of the AIR is mandatory in accordance with the Superintendent’s Rule governing the filing of the AIR. This rule formalizes the Superintendent’s existing e-filing practice for the AIR, which was implemented in 2009, using FSCO’s Licensing Link web portal.
Mortgage brokerages that fail to submit their AIR via Licensing Link by March 31, 2013 may be required to pay an administrative monetary penalty of $1000.
Last Year’s AIR Compliance Rate
Last year, 9 per cent of brokerages and administrators failed to comply with this filing requirement, as they either filed after the March 31st deadline or did not file at all. As a result, FSCO took enforcement action by imposing $1000 administrative monetary penalties.
How to Complete the AIR
Principal brokers should visit Licensing Link between January 21, at noon, and March 31, 2013 to fill out the online form in English. If a French version of the AIR form is required, please contact FSCO at 1-800-668-0128 (toll-free) or (416) 250-7250.
FSCO will be vigorously enforcing the AIR requirement. Make sure you complete the AIR in Licensing Link by the deadline. Non-compliance increases FSCO’s regulatory costs and impacts the fees you pay.
Prior to filing the AIR, you are encouraged to review the following resources: