Navigating the regulatory framework for setting up mortgage investment corporations (“MICs”), mortgage funds and other mortgage investment entities (“MIEs”), including how to qualify while maintaining compliance with the Financial Services Regulatory Authority of Ontario (“FSRA”), the Financial Services Commission of Ontario (“FSCO”), and the Ontario Securities Commission (“OSC”), can be daunting, and nearly impossible to manage alone. Understanding how the Mortgage Brokerages Lenders and Administrators Act (“MBLA”) and its Regulations, the Ontario Securities Act (“OSA”) and its National Instrument Policies, including NI 45-106, the Canada Income Tax Act (“ITA”) especially Section 130.1 for MICs and the Income Tax Folio S3-F10-C2 for understanding Qualified Investments versus Prohibited Investments when investing through Registered Plans such as RRSPs, RESPs, RRIF, RDSPs, FHSAs and TFSAs, the Ontario Business Corporations Act (“OBCA”), especially section 38(3) when devising a dividend plan for MICs but at the same time maintaining compliance with subsections 130.1(1) and 130.1(6)(e) of the ITA, the Ontario Limited Partnership Act when considering alternative mortgage investment vehicles and raising capital instead of a MIC, come together with nearly every consideration of setting up an MIE, raising capital for it, originating and brokering mortgage loans, managing investors and the MIE’s investments, administering mortgage loans, licensing requirements to do all of this and reporting obligations, should only be endeavored with the help of someone like Jeff Levy from Levy Zavet, Lawyers.
For over 15 years Jeff Levy has focused heavily on the evolving private mortgage lending and securitization, mortgage brokering and mortgage investment entities space across Canada. In setting up, advising, managing, administering and supporting hundreds of MICs, other MIEs, mortgage brokerages and mortgage administrators, Jeff Levy has encountered nearly every question, answer, problem and solution imaginable. Jeff Levy has worked closely with the educators and regulators including FSRA and the OSC, and constantly weighs in as a trusted advisor and representative.
