The applicant mortgage brokerage requested a hearing before the Financial Services Tribunal after the Superintendent of Financial Services issued a Notice of Proposal to impose a $2,000 administrative penalty for failing to maintain required errors and omissions insurance.
The applicant admitted the lapse in coverage but argued the failure was inadvertent and pleaded inability to pay.
The Tribunal found the failure was negligent but not intentional, and noted there was evidence of only one transaction during the uninsured period.
The Tribunal directed the Superintendent to impose a reduced administrative penalty of $1,500.
