The following statement provides an overview of the suitability requirements and assessment principles the Director will apply when reviewing licence applications. Brokerages and principal brokers may also wish to keep these suitability requirements in mind when making hiring decisions and supporting applications for licence for associates and brokers.
When determining whether an applicant is suitable to be licensed, subsection 13(1) of the Act requires the Director to consider any matter he/she considers appropriate in determining suitability. The following are examples of matters that the Director may consider in making that determination:
- whether an individual’s past conduct affords reasonable grounds for belief that he/she will not deal or trade in mortgages in accordance with the law and with integrity and honesty;
- whether an individual is carrying on activities that contravene or will contravene the Act or the regulations if he/she is licensed; and
- whether an individual has made a false statement or has provided false information to the Director with respect to the application for the licence.
The brokerage, associate and broker licence applications require the applicant to disclose information relevant to the Director’s determination of suitability for a licence. The applicant is required to provide information with respect to the existence of a criminal record, other registrations or licences, and any bankruptcy or consumer proposal.
All applicants are required to include with their application a completed Criminal Record Check, conducted at a detachment of the RCMP or a municipal or provincial police force. The applicant must also indicate on their application if he/she has have ever been convicted of an offence under any law of any province, territory, state or country, and if he/she is currently the subject of any charge. If so, applicants must provide all relevant details at the time of application. FCNB may also conduct an independent criminal record check.
Other Registrations or Licences
The applicant must disclose the refusal of a registration or licence under any legislation requiring registration or licensing to deal with the public in any capacity, in any province, territory, state, or country. An applicant who holds or has held such a registration or licence is also required to disclose whether he/she has been or is the subject of a disciplinary proceeding that resulted in a penalty being imposed or whether they are the subject of an investigation or upcoming disciplinary proceeding that may result in a penalty being imposed.
Bankruptcy or Consumer Proposal
The applicant must disclose whether he/she, either individually, or as a shareholder, officer or partner of a corporation or partnership, has declared bankruptcy, made a voluntary assignment in bankruptcy, made a consumer proposal, or has an undischarged bankruptcy. The applicant must provide:
- the trustee’s name and address;
- the location of bankruptcy filing;
- Notice of Bankruptcy;
- Statement of Affairs;
- Monthly Income and Expense Statement; or
- Consumer Proposal; and
- an explanation of the circumstances of the bankruptcy or proposal.
Where an application is subject to review on the determination of suitability, the outcome will depend on the facts and circumstances of the particular case. Relevant circumstances for consideration when reviewing applicant suitability may include:
- the nature of an offence or charge with regard to the provision of financial services and the applicant’s ability to abide by the law;
- the frequency or number of offences or charges;
- the seriousness of an offence or charge;
- in the case of bankruptcy, whether the applicant acted dishonestly, recklessly or with intention to avoid responsibility for his or her debts; and
- any failure on the part of an applicant to provide full disclosure with respect to prior registrations or licences, bankruptcy or criminal conduct.
In addition to information submitted in the application, an applicant may also be or have been the subject of a complaint, investigation, or disciplinary action by FCNB. The information from any complaint, investigation, or disciplinary action may also be considered when determining an applicant’s suitability.
Note: that providing false information on an application is an offence and will affect the decision to issue a licence. Where it appears that false statements have been made on an application or in subsequent submissions, such statements will be assessed by FCNB staff.