PRINCIPAL BROKER MSA TRAINING

On November 6th, the BC Financial Services Authority (BCFSA) sent an email regarding the Principal Broker MSA Training requirement.


These changes do not take effect until October 2026, so there is plenty of time to review your options. We also expect more details from BCFSA over the coming months. There is no need to rush a decision right now.


Who Received the BCFSA Message – and Why?


If you received the recent BCFSA communication, it’s because:

  • You are currently incorporated, and
  • You are registered as a Designated Individual (DI) with BCFSA.


This training is mandatory for anyone who wants to be licensed as a Principal Broker once the Mortgage Services Act (MSA) comes into force.

Only incorporated brokers were included in this round of communication, as BCFSA prepares for changes to how incorporated licensees will be structured and regulated.


Before the MSA takes effect, you will need to choose the path forward that best fits your business under the new rules. The scenarios below will help you start thinking about your options.


1. If You Are a Sub Mortgage Broker Registered Under ABW or an Associated Brokerage

If you are currently a sub mortgage broker registered directly under ABW or an Associated Brokerage and want to keep the same general arrangement:

  • Connect with your current Designated Individual / Team Lead to discuss their plans for their brokerage/corporation under the new framework.
  • You will need to complete the upcoming MSA training for Mortgage Brokers (not the Principal Broker version).
  • Under the new structure, you will only be allowed to be paid in your personal name, not through a corporation.
  • Your regulatory title will change to Mortgage Broker under the new framework.


2. If You Have a Registered Brokerage/Corporation with BCFSA and Co-Broker with ABW

If you currently have a registered Brokerage/Corporation with BCFSA and a co-brokering agreement with ABW, you will need to decide whether you want to:

  1. Remain a full-scale brokerage,
  2. Transition to a Personal Mortgage Corporation (PMC), or
  3. Become an unincorporated Mortgage Broker directly under ABW.


If You Stay as a Brokerage

You’ll be responsible for:

  • Creating and maintaining your own Policies and Procedures Manual
  • Carrying your own Errors & Omissions Insurance
  • Managing additional reporting requirements to BCFSA
  • Paying higher licensing and administrative costs
  • Naming a qualified and properly licensed Principal Broker
Note: This is not a complete list of all brokerage responsibilities under the MSA.

If You Choose to Become a Personal Mortgage Corporation (PMC)

  • You will need to open a Personal Mortgage Corporation with BC Registries and notify BCFSA of this when registering. (More details from BCFSA are expected in the coming months.)
  • You will be allowed to be paid into a corporation.
  • You will become a Mortgage Broker directly registered under ABW with BCFSA, using your PMC for compensation.
Again, this is not a complete list of all requirements for PMCs. More guidance will follow as BCFSA releases it.

3. If You Run a Team but Don’t Want Full Brokerage Responsibilities

If you currently have a number of sub mortgage brokers registered under your brokerage/corporation, but you don’t want the full responsibilities of operating a brokerage while still maintaining your team:

  • If you want to continue being paid into a corporation, you’ll need to register a Personal Mortgage Corporation.
  • You, and any additional Mortgage Brokers or PMCs who wish to move with you, will transfer your licenses directly under ABW as Mortgage Brokers.
  • You will then apply to BCFSA to form a Team and include any team members you choose.

We are still waiting for BCFSA to release all details regarding team naming, structure, and advertising requirements. We will share that information as soon as it becomes available.


Our General Expectation

In most cases, we anticipate that incorporated Brokers who are not running a team will likely transition to a Personal Mortgage Corporation, cancelling their current status as a Brokerage with BCFSA.

Incorporated Brokers/Brokerages that are running a team within ABW will need to engage with ABW and BCFSA to fully understand their options and the associated responsibilities.


All lists above are summaries only and not a complete outline of regulatory requirements.


What Should You Be Asking Yourself?


The key question is:

Do you want to own and operate a brokerage, or do you want to focus primarily on assisting clients with their mortgage needs?

If you’re undecided, it may be worthwhile to complete the BCFSA Principal Broker course to gain a clearer understanding of what will be expected of Principal Brokers under the MSA.

For now, if you received the notice from BCFSA, please ensure you complete the required MSA training that applies to your situation.


Resources

You can learn more directly from BCFSA here:


Reference:
This information is sourced from internal communications provided by Justin Noda, distributed via email dated November 6, 2024.

If you have any questions or inquiries regarding MSA Training, FINTRAC or Compliance with A Better Way Mortgage Group, please reach out to us at compliance@abwmortgage.ca.


We aim to respond within 24 hours. If you haven't received a response within this timeframe, it may be because we're awaiting additional feedback to provide you with an accurate answer. Your patience and understanding are greatly appreciated.