BCFSA will assume responsibility by spring 2021 under plans announced by the BC government
Money laundering and other illegal and poor behaviour in the real estate industry will be tackled better under a single regulator, the BC government says.
The province’s Ministry of Finance has announced plans to bring regulation of real estate under one regulator, the BC Financial Services Authority which became a Crown agency at the start of November.
It says that combining the BCFSA with existing real estate regulators, the Office of the Superintendent of Real Estate (OSRE) and the Real Estate Council of British Columbia (RECBC), will provide greater oversight and bolster consumer protection.
“Buying a home is one of the most significant purchases people make in their lifetime, and by working together, the BC Financial Services Authority, Office of the Superintendent of Real Estate and the Real Estate Council of BC can combine their expertise to better protect consumers,” said Carole James, Minister of Finance. “Through legislation, we are giving people the assurance they deserve, while continuing to create world-leading protections against money laundering and other criminal activity in our real estate sector.”
The OSRE and RECBC will be integrated into BCFSA, subject to the passing of legislation, probably by spring 2021. The single regulator will then assume responsibility for real estate licensing, conduct, investigations and discipline.
It already regulates mortgage brokers, private pension plans and financial institutions.
The move to a single regulator will simplify the framework and speed up investigation and enforcement.
Stanley Hamilton, chair of BCFSA says that the announcement this week is an important step towards modern, efficient, and effective regulation.
“This announcement builds on the important work already in progress at the BCFSA and positions consumers to be able to benefit from an unprecedented depth of expertise and experience.”
Welcomed by existing bodies
The two real estate regulators that will become part of the BCFSA have both welcomed the combination.
“We welcome the changes announced today to ensure that the regulatory framework provides effective consumer protection and to increase public confidence in the broader financial services sector,” said Micheal Noseworthy, superintendent of OSRE.
And Elain Duvall, chair of RECBC, said: “Today’s announcement is good news for both real estate consumers and the sector as we combine expertise in one regulator. As we work towards the establishment of a single regulator, public protection will continue to be the Real Estate Council of British Columbia’s primary focus.”
