OFST 2016

The Superintendent of Financial Services issued an interim order suspending the applicants' mortgage brokerage and broker licences pending a proposal to revoke them.

The applicants sought to bring a motion to lift or stay the interim order.

The Superintendent raised a jurisdictional objection.

The Financial Services Tribunal held that it lacked the express or implied statutory authority under the Mortgage Brokerages, Lenders and Administrators Act, 2006 or the Financial Services Commission of Ontario Act, 1997 to lift or stay an interim suspension order pending a hearing on the merits.

The Applicant, a licensed life insurance agent, failed to maintain errors and omissions (E&O) insurance for approximately 10.5 months after leaving the industry without formally surrendering his licence.

The Superintendent of Financial Services issued a Notice of Proposal to impose an administrative monetary penalty (AMP) of $1,800.

The Financial Services Tribunal found that the Applicant contravened the E&O requirement and that an AMP was appropriate to promote compliance.

However, considering the Applicant's negligence rather than intentional misconduct, the minimal potential harm, and the modest economic benefit derived, the Tribunal reduced the penalty to $1,000.

The Superintendent of Financial Services issued a Notice of Proposal to impose a $1,000 administrative monetary penalty on the applicant, a life insurance agent, for failing to complete a mandatory online questionnaire.

The applicant requested a hearing, arguing she did not see the emails as she was caring for a young child and her husband did not check her junk mail folder.

The Financial Services Tribunal found that the applicant negligently contravened the Insurance Act by failing to respond to the inquiry.

The Tribunal agreed with the Superintendent's amended proposal to reduce the penalty to $500, finding it proportional to the negligent, rather than intentional, nature of the breach.