Broker, brokerage failed to take reasonable steps to verify a borrower's identity, says regulator
Ontario’s financial services regulator has imposed administrative penalties against a broker and brokerage based in the province, with a compliance order also issued against the brokerage, for failing to take reasonable steps to verify a borrower’s identity.
The Financial Services Regulatory Authority of Ontario (FSRA) said it had imposed a $5,000 administrative penalty against Arman Raymond Iskin and $7,500 against Streamline Mortgages Ltd. for contravention of subsection 11(2) of Ontario Regulation 188/08.
Iskin, Streamline’s principal broker, “contravened the Act by omitting to take steps that might reasonably be expected to ensure that Streamline Mortgages complied with requirements established under the Act,” according to FSRA.
The order was issued following a settlement between the regulator, Iskin, and the brokerage.
FSRA recently issued guidance aimed at establishing requirements for mortgage professionals to conduct business in a way that does not facilitate fraud or other illegal conduct, focusing on fraud detection and prevention as well as a duty to conduct identity verification.
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