Dear BCFSA,
I am writing to request guidance on a transition issue under the Mortgage Services Act, the Mortgage Services Regulation, and the Mortgage Services Rules.
The issue is the period between October 13, 2026, when the new mortgage services licensing framework comes into force, and April 1, 2027, when the mortgage services team provisions come into force.
Our understanding is that, as a practical matter, the mortgage services team structure is the regulatory mechanism that permits one licensed mortgage broker to work with another licensed mortgage broker acting in an assistant or support capacity. In other words, where a licensed assistant is working closely with a lead broker on the same files, dealing with the same clients, or otherwise operating as part of a coordinated licensed unit, the team rules appear to provide the regulatory “box” for that arrangement.
That understanding appears consistent with the approach taken under the Real Estate Services Act, where licensed assistants are treated as licensees and, where they function as part of a coordinated licensed practice, the team structure is the relevant compliance framework. The mortgage services team provisions appear to adopt the same underlying concept.
If that is correct, a practical difficulty arises during the six-month period before team registration is available. Some mortgage brokers transitioning into the new regime will already be working with licensed assistants, including individuals coming from co-brokering entities or other existing operating models that are being reorganized for the MSA framework. If the team structure is the required compliance mechanism for that relationship, but teams cannot be registered until April 1, 2027, there appears to be a gap in which those licensed assistant arrangements may no longer fit comfortably within the new regime, even if both individuals are licensed through the same brokerage.
We would therefore appreciate BCFSA’s guidance on the following:
- Is it correct that, where two licensed mortgage brokers work together in a lead broker / licensed assistant model, and they are dealing with the same clients or files in a coordinated way, the intended long-term compliant structure under the MSA is registration as a mortgage services team?
- If so, how should brokerages and licensees handle that same working relationship during the period from October 13, 2026 to April 1, 2027, when the team registration framework is not yet in force?
- During that interim period, may a licensed assistant who is themselves a licensed mortgage broker continue to support another licensed broker within the same brokerage, provided all licensed activity is conducted through the brokerage and under the brokerage’s supervision structure?
- If some form of continued interim arrangement is permitted, are there limits on how the parties may work together, share clients, present themselves publicly, or divide responsibilities before team registration becomes available?
- If BCFSA’s expectation is that arrangements that would require team registration after April 1, 2027 should not continue during the interim period, what compliant alternatives does BCFSA recommend for brokerages seeking to preserve continuity of staffing and client service during that six-month gap?
The concern is not merely theoretical. If the team model is indeed the proper regulatory structure for licensed assistants under the MSA, then delaying implementation of the team provisions may create a temporary gap during which brokers cannot lawfully maintain existing licensed assistant arrangements, despite those arrangements being expected to fit within the new regime once team registration becomes available.
We would be grateful for any guidance BCFSA can provide on how brokerages and licensees are expected to navigate this transition period. In particular, it would be helpful to know whether BCFSA intends to issue any bulletin, FAQ, or interpretive guidance addressing licensed assistants and interim compliance before the team provisions come into force.
Thank you for your time and consideration. We would appreciate any clarification you can provide.