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
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.
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