False statements, lack of remorse cited in notice
The Financial Services Regulatory Authority of Ontario (FSRA) has initiated enforcement proceedings against two mortgage agents over allegations of dishonest conduct and unsuitability for licensing.
In one case, FSRA has proposed revoking the mortgage agent Level 1 licence of Shah Ata Hussain Faridi and refusing to issue him a Level 2 licence.
"Faridi has demonstrated a consistent and ongoing pattern of dishonesty in his dealings with multiple regulatory bodies and consumers," FSRA stated in its notice of proposal.
The regulator alleges Faridi made false statements or provided misleading information on his 2022 and 2023 licence applications by failing to disclose prior disciplinary actions taken against him by the Ontario Motor Vehicle Industry Council (OMVIC) and the Licence Appeal Tribunal.
"Providing truthful and honest disclosure during the application process is essential to FSRA's gatekeeping function," the notice reads, adding that licences represent an "endorsement to the public" that agents can provide competent and ethical services.
Read next: FSRA revokes licence of First Swiss Mortgage broker for misconduct
Separately, FSRA refuses to issue a mortgage agent licence to Gowthaman Balachandran, citing his "past conduct" as grounds to believe he will not operate lawfully with "integrity and honesty."
The allegations against Balachandran stem from a 2017 application for an insurance agent licence, which the previous industry regulator refused after he allegedly failed to cooperate with an investigation into suspected cheating on a licensing exam.
"Balachandran did not demonstrate these qualities when he was seeking licensing, and his non-compliance with re-examination efforts coupled with his abusive conduct with FSCO's investigator is extremely concerning," FSRA's notice states.
While applying for a mortgage agent licence in 2022, Balachandran stated he had cancelled his prior insurance licence due to "disinterest." But in 2023, he acknowledged the licence had been "revoked."
FSRA argued Balachandran "has not expressed any remorse or accountability for past conduct."
Faridi and Balachandran requested a hearing before the Financial Services Tribunal to dispute FSRA's proposal.
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