Disclaimer
An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person’s or entity’s licence on the Licensing Link section of FSRA’s website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.
Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29, as amended (the “Act”), in particular sections 38 and 39;

AND IN THE MATTER OF Hi-Rise Capital Ltd. (“Hi-Rise”).


ORDER IMPOSING ADMINISTRATIVE PENALTIES

Hi-Rise is licensed as a mortgage brokerage (licence # 10897) and as a mortgage administrator (licence # 11893) under the Act.

On April 1, 2019, the Superintendent of Financial Services issued a Notice of Proposal in respect of Hi-Rise (the “Notice of Proposal”) proposing to:

Impose administrative penalties on Hi-Rise for contravening Sections 24, 25, 26, 27, 31(1)1, 31(1)10, 33, and 40 of Ontario Regulation 188/08 and Sections 10.1, 15, 18(2)(5), 18(2)(6), 18(3)(5), 19, 20, 21, and 36 of Ontario Regulation 189/08; and

Requests for Hearing (Form 1) dated June 7, 2019 were delivered by Hi-Rise and Jim Neilas to the Financial Services Tribunal (the “Tribunal”) in accordance with section 39(5) of the Act respecting the Notice of Proposal.

Effective June 8, 2019, pursuant to the Financial Services Regulatory Authority of Ontario Act, 2016, S.O. 2016, c. 37, Sched. 8, the Financial Services Regulatory Authority of Ontario became the regulator under the Act and the powers and duties previously vested in the Superintendent of Financial Services under the Act were vested in the Chief Executive Officer of Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”).

On April 17, 2023, Hi-Rise withdrew its Request for Hearing, and, on May 2, 2023, the Tribunal closed its file in respect of this matter.

This order is made pursuant to a settlement entered into by Hi-Rise and the Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer.

ORDER

Administrative penalties in the total amount of $350,000 are hereby imposed on Hi-Rise Capital Ltd., for the reasons set out in the Minutes of Settlement and Undertaking dated May 16, 2023.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Hi-Rise Capital Ltd. with information as to where and how to pay the administrative penalties.

If Hi-Rise Capital Ltd. fails to pay the administrative penalty in accordance with the terms of this Order and any further agreement or undertaking, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario, May 18, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.