PurposePermanent link to this section

BC Financial Services Authority is issuing this Advisory to notify licensees that amendments to the Real Estate Services Rules (the “Rules”) that expand the administrative penalty framework (“Administrative Penalty Framework”) to unlicensed activity as well as other contraventions will come into effect on July 1, 2024.

Background InformationPermanent link to this section

On July 1, 2024, BCFSA is bringing into force amendments to the Rules to expand the Administrative Penalty Framework set out in Sections 26 and 27 of the Rules.

The Administrative Penalty Framework will expand from four categories to six categories:

• Category A [business management infractions]
• Category B [licensee responsibilities]
• Category C [substantial duties owed to clients and non-clients]
• Category D [daily penalty amounts]
• NEW Category E [refusal to comply with BCFSA investigations by unlicensed persons and licensees]
• NEW Category F [unlicensed and related restricted activity]

Overview of the AmendmentsPermanent link to this section

Categories E and F are new and capture unlicensed persons for the first time. Pre-existing categories B, C, and D have been expanded to make more infractions eligible to be resolved by administrative penalties rather than a formal notice of discipline hearing, including contravening requirements related to disclosures licensees must make to consumers. A contravention of Section 75 of the Rules (annual brokerage filings) is also being moved from Category A [business management infractions] into Category D [daily penalty amounts]. Each category will have associated penalty amounts in Section 27 of the Rules.

The amendments also modernize language in the Rules by changing the term “family partner” to “spouse.”

The amendments do not change licensing requirements nor any licensee obligations. A “licensee” is any entity licensed under the Real Estate Services Act, and includes brokerages, managing brokers, associate brokers, and representatives.

Additional InformationPermanent link to this section

Expanding the Administrative Penalty Framework of the Rules received Ministerial consent after BCFSA consulted on the proposed Rules amendments between September 27, 2023, and November 26, 2023, in accordance with the requirements under the Financial Services Authority Rule-Making Procedure Regulation.

To see what participants had to say and to learn how BCFSA raised awareness of the consultation opportunity, please see the Consultation Summary Report. The Deposited Rules are available on BCFSA’s website. BCFSA will also publish updated processes related to the changes.

For questions or more information about the new Rules, please contact a Practice Standards Advisor.