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BC MICS under the New Mortgage Services Act: MIC Exemptions Under BC’s Mortgage Services Act vs. BC Securities Act

November 28, 2025

Mortgage Investment Corporations (MICs) in British Columbia operate at the intersection of two regulatory regimes: the new Mortgage Services Act (MSA) for mortgage brokering/lending, and the BC Securities Act for investment activities. Below is a comparative analysis of how exemptions under each framework apply to MICs, highlighting overlaps, differences, and recent changes. The core point is that MICs generally must comply with both regimes – there are limited exemptions to completely exclude them from either – so understanding both sets of rules is crucial.
Canada Bank Fraud: APP Scams, UK Reimbursement Rules, and What Needs to Change

October 30, 2025

Elderly victim loses $1.7M in Canada bank fraud. Learn how rising scams expose weak protections—and what banks must do to prevent future losses.
Canada AML/ATF Rules Update: New Reporting and Verification Rules for MSBs, Title Insurers, Real Estate, and Private ABM Acquirers

October 29, 2025

Canada’s latest AML/ATF rules are now in force under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). These regulatory changes strengthen oversight, expand reporting obligations, and introduce new due diligence and sanctions reporting requirements. Here’s a breakdown of what changed and who’s impacted. Who’s Impacted by the New Canada AML/ATF Rules The following sectors and entities are directly affected by the latest PCMLTFA amendments: Money Services Businesses (MSBs) Title insurers (now classified as reporting entities) Real estate brokers and sales representatives Private ABM acquirers (now treated as MSBs) All reporting entities handling sanctioned property Key Changes to Canada’s AML/ATF Compliance Requirements 1. MSB Agent Due Diligence and Criminal Record Checks Verify agent or mandatary eligibility before engagement and every 2 years + 30 days. Conduct criminal record checks for the CEO, president, directors, and all owners/controllers holding 20% or more (or for the individual agent). Records must be dated within 6 months and retained for 5 years. Legacy agents must be verified by October 1, 2027. Non-compliance penalties: Up to $250,000/2 years (summary) or $500,000/5 years (indictment). 2. High-Risk Beneficial Ownership (BO) Discrepancy Reporting For high-risk CBCA corporations, compare your internal BO data with Corporations Canada’s ISC database. If a material discrepancy exists, file a report within 30 days and retain acknowledgments for 5 years. No report required if resolved within 30 days (voluntary reporting still allowed). If ownership cannot be confirmed, take reasonable steps to verify and document the attempt. 3. Identity Verification via Agents (All Reporting Entities) Individuals: Use government photo ID, credit-file, or dual-process methods. Entities: Confirm existence using official registries or records. A written agreement with the verifying agent is mandatory. Reporting entities remain fully responsible for verification accuracy and must document oversight in their compliance program. 4. Real Estate: Unrepresented Party KYC Verify the identity of unrepresented parties. Complete all third-party determinations and maintain records. 5. Sanctioned Property and LPEPR Expansion File an LPEPR (Large Property or Entity Possession Report) with FINTRAC when disclosure is required under SEMA or the Magnitsky Act—in addition to existing UN Act/Criminal Code requirements. Broad deemed ownership rules capture entities controlled by sanctioned persons. If money laundering, terrorist financing, or sanctions evasion is suspected, file both LPEPR and STR. Retain reports for 5 years and integrate into AML and sanctions compliance workflows. 6. Title Insurers Now Reporting Entities Register with FINTRAC (if applicable). Build a complete AML/ATF compliance program, including KYC, recordkeeping, and reporting. Year 1: FINTRAC will focus on outreach and guidance rather than enforcement. 7. Private ABM Acquirers Must register as MSBs and implement full AML/ATF programs. Requirements include KYC, recordkeeping, and suspicious transaction reporting. Year 1: FINTRAC will support compliance readiness through outreach initiatives. Key Dates to Remember In force: April 1, 2025 (early measures) and October 1, 2025 (additional provisions). Deadline: October 1, 2027 — initial MSB checks for pre–October 2025 agents. Immediate Next Steps for Compliance To stay compliant with Canada’s new AML/ATF and PCMLTFA requirements, reporting entities should: Update policies, procedures, and staff training. Implement an MSB agent due diligence tracker for pre-engagement and biennial reviews, including criminal checks. Add BO discrepancy reporting workflows for high-risk CBCA clients. Document agent and mandatary KYC oversight with QA sampling. Update real estate processes to include unrepresented-party identity verification. Coordinate AML and sanctions teams for LPEPR and STR dual filings, freezing, and disclosures. Ensure 5-year record retention for all new records, reports, and acknowledgments. Strengthening Canada’s AML/ATF Framework The 2025 Canada AML/ATF rule changes mark a significant evolution in compliance expectations under the PCMLTFA. With new due diligence, ownership transparency, and sanctions reporting requirements, all reporting entities should act now to strengthen their compliance programs and reduce enforcement risk.
FINTRAC PCMLTFA Requirements for Mortgage Brokers and Lenders: 2024 Compliance Videos and Guide

October 29, 2025

As of October 11, 2024, Canada’s mortgage sector—administrators, brokers, and lenders—is now covered by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
GST/HST New Housing Rebate in Canada: How to Prove Primary Residence Intent After Lisi v. The King (2025)

October 29, 2025

The GST/HST New Housing Rebate can return meaningful dollars on a new-build purchase. The key hurdle is often overlooked: proving you intended to use the property as your primary residence when you signed the purchase agreement. That’s the focus of section 254(2)(b) of the Excise Tax Act. Technical, yes—but manageable with the right preparation. In Lisi v. The King (2025 TCC 106), two buyers sold soon after closing. CRA denied their rebates. The Tax Court looked past the quick sales and examined intention at the time of contract. Evidence carried the day—credible testimony, real-world steps toward occupancy, and a coherent narrative. What works in practice Establish intent at agreement time (ETA s.254(2)(b)): utilities in your name, home insurance, internet, and change-of-address confirmations. Show tangible steps: moving invoices, dated photos of furnished rooms, occupancy dates, appliance and renovation receipts. Life happens—health issues, relationship changes, job moves. These do not erase original intent if your documentation is strong. Expect CRA scrutiny. CRA must justify a denial with evidence; you should be ready with a consistent, well-organized file. Bottom line: Start documenting early and keep your records tight. If you anticipate a quick sale, shore up your file before listing. If CRA asks, respond with facts, not assumptions. Samantha Gale at s.gale@privatelenderassociation.ca.
Personal Mortgage Corporations Soon Permitted in BC

August 21, 2025

Under BC’s new Mortgage Services Act, mortgage professionals can now use Personal Mortgage Corporations for greater tax efficiency and business flexibility. Learn about licensing requirements and how brokers should prepare before the 2026 transition deadline.
Regulation on Foreign Ownership of Agricultural Land

February 26, 2024

Foreign investors are potentially subject to two tiers of regulation: (1) federal foreign investment legislation provides an initial hurdle towards foreign in-bound investment and the application of such legislation may vary in an ever-changing geopolitical climate, and (2) foreign investors must navigate provincial and territorial regulations to determine whether an investment in agricultural land is even permissible. Blake, Cassels and Graydon discusses how Canada’s regulatory frameworks may evolve to address food security concerns given the momentum seen in the United States. Read the analyses here https://www.jdsupra.com/legalnews/securing-canada-s-harvest-regulations-1720025/
Extension of the Foreign Buyer’s Ban

February 26, 2024

The Government of Canada has announced a two-year extension to an existing ban on foreign ownership of Canadian housing. The Prohibition on the Purchase of Residential Property by Non-Canadians Act (the Act) was set to expire at the end of 2024, it will now be extended to January 1, 2027. For further information read here https://www.jdsupra.com/legalnews/canada-extends-ban-on-foreign-home-7301260/
Regulatory Updates for the Private Lending Industry — Ontario and the Financial Services Regulatory Authority

February 26, 2024

CAPL has quarterly meetings with the Financial Services Regulatory Authority of Ontario (FSRA), in which we are able to discuss issues relating to the mortgage brokering sector. We can report that FSRA is very actively focussing regulatory initiatives on private mortgage lending. Here is an update on some of those initiatives: Mortgage Suitability Consultation FSRA is currently conducting a consultation on new product suitability guidance, and has presented their expectations around suitability in a webinar (which contains a detailed Q and A), which can be viewed here https://www.fsrao.ca/industry/mortgage-brokering/webinars/fsras-webinar-mortgage-product-suitability-assessment-january-24-2024 FSRA’s goal is to ensure that licensees support suitability assessments with clear documentation – for those engaged in private lending in Ontario, we recommend that you review this example from FSRA on how to document suitability for a borrower obtaining a private mortgage – https://www.fsrao.ca/media/24161/download FSRA expects licensees to be able to answer and document for private mortgage transactions the following questions: Is it clear that the borrower(s) would not have qualified for a lower cost option (e.g., from a lender with lower rates and/or fees)? Is the mortgage affordable and sustainable for the borrower for the term of the mortgage? Has the broker/agent discussed a realistic exit strategy with the borrower and the risks involved in not executing that strategy? In addition, you may wish to review proposed new Investor Disclosure Forms – see section F which addresses suitability advice to investors https://www.fsrao.ca/engagement-and-consultations/consultation-proposed-mortgage-product-suitability-assessment-guidance The consultation is open until February 28, 2024 and can be found here https://www.fsrao.ca/engagement-and-consultations/consultation-proposed-mortgage-product-suitability-assessment-guidance Vulnerable Consumer Proposed Approach FSRA is conducting a sector wide consultation on protecting vulnerable consumers. The purpose of the consultation is to find ways to promote the inclusive and fair treatment of vulnerable consumers and to prevent their targeted financial mistreatment. In addition, FSRA is seeking feedback on improving consumer education, engagement, and awareness building efforts. The consultation closes on March 8, 2024 and can be found here Consultation on FSRA’s Proposed Approach to Strengthening Protection of Vulnerable Consumers | Financial Services Regulatory Authority of Ontario (fsrao.ca) Deadline approaching to Complete Level 2 Private Mortgage Course Brokers, principal brokers and level 2 agents wishing to continue dealing in private mortgages need to complete the Private Mortgages Course by March 31, 2024. APR Compliance Blitz Ontario mortgage brokerages should be prepared for FSRA compliance audits in 2024 and 2025 which are focussed on cost of credit disclosure and accurate APR calculations. FSRA’s recent examinations have uncovered cases where the APR has been calculated and disclosed incorrectly. Miscalculations usually arise because of the following: Excluding required fees (administrative, lender and/or brokerage fees, legal service and disbursement fees, appraisal fees). Excluding required fees from the disclosure document – resulting in both non-disclosure to the borrower and incorrect APR calculations. Adding incorrect fee amounts due to contradicting statements and disclosures. For example, lender fees listed in the commitment letter do not match those shown on the disclosure document (or vice versa), and the incorrect fee was used to calculate the APR. Please provide us with your questions and comments on these matters by emailing us at s.gale@privatelenderassociation.ca
Regulatory Update: Criminal Interest Rate – Proposed 35% APR

January 3, 2024

Proposed Criminal Interest Rate Regulations providing exemptions now published. On December 23, 2023, the federal government published proposed Criminal Interest Regulations which specify certain exemptions to the new criminal interest rate ceiling contained in the Criminal Code. If you recall from previous discussions, the government introduced sweeping changes to the criminal interest provisions, which currently prohibits lenders from charging and/or receiving payments from loans with effective interest rates of 60% (which translates to an approximate annualized percentage rate (APR) of 48%) or more. The new prohibited rate will now be 35% APR once brought into force. Note that there is a current consultation to reduce this rate even further. The rationale for the proposed exemptions to the criminal interest rate are based on the view that the proposed exempted loans will not trap consumers in a debt cycle. They include: 1. Commercial loans Loans which are for commercial or business purposes to borrowers who are not natural persons are exempt from the 35% criminal interest rate prohibition, as follows: a) commercial loans over $10,000 and up to $500,000 are exempt from the criminal rate of interest, so long as the APR does not exceed 48%; and b)commercial loans above $500,000 are not subject to any criminal rate cap. The regulations, therefore: -loosen the criminal interest rate prohibitions for commercial loans by removing previous caps for loans over $500,000; -make no changes to commercial loans over $10,000 up to $500,000; and -create greater restrictions for commercial loans under $10,000 by creating a ceiling of 35% APR. 2. Pawn loans Pawn loans under $1,000 are exempt from the 35% APR ceiling provided that the APR does not exceed 48% and certain other conditions are met. 3. Payday loans There will be new federal limits on the total cost of borrowing under payday loan agreements of 14%. This limit of $14 for every $100 borrowed will apply in all provinces with a payday loan regime and is intended to create uniformity in borrowing costs from province to province. Under the proposed regulations, all other loans, including residential mortgages, installment loans and personal loans will be subject to the new criminal rate ceiling. If you have comments or questions on the proposed exemptions or the possible further lowering of the criminal interest rate ceiling, please let us know by emailing us at s.gale@privatelenderassociation.ca Please consider reaching out to your Member of Parliament to share any concerns regarding the proposed legislation.

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