Compliance with legislation

Once registered, loan brokers must comply with applicable legislation.

Among the requirements of the legislation, loan brokers are prohibited from requiring or accepting any payment from a consumer unless:

• the loan broker is registered;
• the loan broker provides the consumer with the written disclosure required by the legislation; and
• the consumer has actually received the proceeds of the loan.

Every arrangement or agreement that does not meet these three criteria is void.

There are other requirements in the legislation that affects loan brokers. Registered loan brokers must identify and understand these requirements.

Loan brokers must pay an annual registration fee of $500. This fee is due by December 31 of every year.

Loan brokers must ensure any bond required by the Superintendent is maintained. Loan brokers must remit evidence that they are maintaining the required bond (i.e. evidence that they have “renewed” the bond).