Originally published on Slaw
The Ontario Divisional Court has overturned a decision of the Financial Services Tribunal in which the Tribunal revoked a mortgage broker's license because the Tribunal failed to give sufficient consideration to lesser penalties before revoking the license.
On two separate occasions, the broker registered a mortgage against the matrimonial home of a client and his wife, at the request of the client. The client also happened to be a registered mortgage broker.
The broker did not speak to the wife nor did he witness her signature on the mortgage documents. Instead, he simply trusted his client that she had in fact signed the mortgage documents. As it turned out the signatures were forgeries.
Notwithstanding that the broker had no previous disciplinary issues, the Tribunal found him unsuitable to remain licensed and revoked his mortgage broker license.
The Divisional Court noted that it was required to give the Tribunal "considerable deference with respect to the penalty imposed." However, the Court concluded that the Tribunal's reasons do not indicate that it gave sufficient consideration to lesser penalties in the case, such as a license suspension or imposition of conditions on the broker. In doing so, the Divisional Court remitted the matter back to the Tribunal to reconsider the issue of penalty.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
