The British Columbia Financial Services Authority has imposed a CAD 50,000 fine and CAD 5,000 in investigative costs on Harvinder Makkar after finding that she carried on business as a submortgage broker without being registered to do so. The case centers on Makkar continuing to provide mortgage services in British Columbia after the brokerage through which her registration was held ceased operations. Makkar had renewed her registration in 2021 under Centum Mortgage Solutions, but that brokerage shut down and terminated its registration in January 2023. BCFSA notified her at that point that she was no longer authorized to conduct mortgage business in British Columbia. Despite that, she continued to hold herself out as a mortgage broker and arranged 10 mortgages through December 2023, receiving about CAD 61,000 in fees. Under the current Mortgage Brokers Act, submortgage brokers must operate through a registered mortgage brokerage and under the supervision of a designated individual. BCFSA also noted that the Mortgage Services Act, due to come into force in October 2026, will further reinforce brokerage supervision and accountability. Under that framework, the designated individual role will be replaced by a principal broker subject to enhanced oversight and compliance requirements.

Original source Back to tracker