IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29, as amended (the “Act”), in particular sections 14 and 21;

AND IN THE MATTER OF Richard Bowers

NOTICE OF PROPOSAL TO REFUSE TO ISSUE LICENCE

TO: Richard Bowers

TAKE NOTICE THAT pursuant to sections 14 and 21 of the Act, and by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Licensing (A) (the “Director”) is proposing to refuse to issue a Mortgage Agent, Level 1, licence to Richard Bowers.

Details of these contraventions and reasons for this proposal are described below. This Notice of Proposal includes allegations that may be considered at a hearing.

SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à: contactcentre@fsrao.ca.

YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SECTIONS 21(2) AND 21(3) OF THE ACT. A hearing by the Tribunal about this Notice of Proposal may be requested by completing the enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you. The Request for Hearing Form (Form 1) must be mailed, delivered, faxed or emailed to:

Address:
Financial Services Tribunal
25 Sheppard Avenue West, 7^th Floor
Toronto, Ontario
M2N 6S6

Attention: Registrar

Fax: 416-226-7750

Email: contact@fstontario.ca

TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you, orders will be issued as described in this Notice of Proposal.

For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal’s website at www.fstontario.ca

The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal (“Rules”) made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended. The Rules are available at the website of the Tribunal: www.fstontario.ca.  Alternatively, copy can be obtained by telephoning the Registrar of the Tribunal at 416-590-7294, or toll free at 1-800-668-0128 extension 7294.

At a hearing, your character, conduct and/or competence may be in issue. You may be furnished with further and or other particulars, including further or other grounds, to support this proposal.

REASONS FOR PROPOSAL

I. INTRODUCTION

1. These are reasons for the proposal by the Director to refuse to issue a Mortgage Agent Licence, Level 1, to Richard Bowers (The “Applicant”).

II. BACKGROUND

FSRA Licensing Application History

2. The Applicant has never held a Mortgage Agent licence issued by the Financial Services Regulatory Authority (“FSRA”).
3. The Applicant was licensed as an Insurance Agent from September 13, 2013, until the termination of the licence on June 28, 2016.
4. On October 4, 2021, the Applicant submitted an application to be licensed as an insurance agent under the Insurance Act, R.S.O. 1990, c.I.8, as amended. Sponsorship of the application was subsequently withdrawn, and the application was not processed.
5. On January 24, 2024, the Applicant submitted an application to be licensed as Mortgage Agent, Level 1, under the Act.

Law Society of Ontario (LSO) Licensing and Discipline

6. The Applicant has been licensed by the Law Society of Ontario (LSO) as a Paralegal since 2010.
7. The LSO regulates, licenses and disciplines Ontario’s lawyers and paralegals pursuant to the Law Society Act and the Law Society’s rules, regulations and guidelines.
8. In 2018, the Applicant was administratively suspended pursuant to summary orders dated May 29, 2018.
9. On January 11, 2019, the Law Society Tribunal determined that between June 14, 2018 and July 12, 2018, the Applicant engaged in professional misconduct by providing legal services and holding himself out as entitled to do so while his licence was administratively suspended. The Applicant was ordered to serve a one-month suspension and pay costs of the discipline proceeding.
10. On May 31, 2024, the Law Society Tribunal Hearing Division issued a Notice of Application alleging further professional misconduct by the Applicant in 2022 and 2023. Specifically, that:
    1. Between April 21, 2022 to May 19, 2022, the Applicant provided legal services and held himself out to entitled to do so while his licence was administratively suspended; and
    2. Between March and May 2023, the Applicant received $6,980, more or less, in client retainer funds for his clients and failed to immediately deposit those funds into a trust account.

Criminal Charges

11. Between 2014 and 2022, the Applicant was charged and found guilty of two criminal charges for which he received conditional discharges and probation.

FSRA Application – Insurance Agent

12. On October 4, 2021, the Applicant submitted an application to become a licensed insurance agent. The Applicant falsely answered “no” when asked questions intended to assess his suitability to be licensed:
13. The Applicant answered “no” when asked if he had ever had a licence or registration to deal with the public refused, revoked, suspended or cancelled or subject to any restrictions or conditions.
14. The Applicant answered “no” when asked if he had ever been subject to discipline or if he was currently the subject of an investigation by a regulatory authority in this jurisdiction or elsewhere.
15. The Applicant swore to have truthfully answered all the questions, and certified he understood that “providing false, misleading or incomplete information may be sufficient grounds to reject the application or revoke a licence”.
16. Subsequently, sponsorship was withdrawn for the application, and it was not processed.

2024 FSRA Application – Mortgage Agent

17. On January 24, 2024, the Applicant applied for a Mortgage Agent licence. The Applicant falsely answered “no” when asked questions intended to assess his suitability to be licensed.
18. The Applicant answered “no” when asked “have you ever been refused registration or a licence under any legislation which required registration or licensing to deal with the public in any capacity (e.g. insurance agent, RIBO broker, securities dealer, motor vehicle dealer etc.) in any province, territory, state, or country; or have you held such a licence and been the subject of a disciplinary proceeding that resulted in a penalty being imposed (e.g. suspension, termination, reprimand, surrender, etc.); or are you the holder of such a licence and currently the subject of an investigation or upcoming disciplinary proceeding that may result in a penalty being imposed?” (emphasis added)
19. The Applicant answered “no” when asked “have you ever pleaded guilty or been found guilty of an offence under any law in any province, territory, state or country, or are you currently the subject of any charges? (emphasis added)
20. The Applicant answered “no” when asked “have you ever been successfully sued or has a complaint ever been made against you to a regulatory body in any province, territory, state, or country that was or is, based in whole or in part, on fraud, theft, deceit, misrepresentation, forgery, or similar conduct; or based in whole or in part, on professional negligence or misconduct (including claims paid by your errors and omissions insurance carrier or bonding company)?”.
21. The Applicant swore to have truthfully answered all the questions, and certified he understood that “providing false or misleading information in this application / declaration and / or any attachment is an offence under the MBLAA and doing so may be sufficient grounds to reject the application / declaration.”

III. GROUNDS FOR REFUSAL TO ISSUE LICENCE

22. Section 14(1) of the Act states that the Chief Executive Officer shall issue a licence to an applicant who satisfies the prescribed requirements for the licence unless the Chief Executive Officer believes, on reasonable grounds, that the applicant is not suitable to be licensed having regard to such circumstances as may be prescribed and such other matters as the Chief Executive Officer considers appropriate.
23. In determining whether an individual is not suitable to be licensed as a mortgage broker or agent, the CEO is required to have regard to the prescribed circumstances in s. 10 of Ontario Regulation 409/07 (the “Regulation”).
1. Whether the individual’s past conduct affords reasonable grounds for belief that he or she will not deal or trade in mortgages in accordance with the law and with integrity and honesty.
2. Whether the individual is carrying on activities that contravene or will contravene the Act or the regulations if he or she is licensed.
3. Whether the individual has made a false statement or has provided false information to the Chief Executive Officer with respect to the application for the licence.
24. The Mortgage Broker Regulators’ Council of Canada (MBRCC) Code of Conduct for the Mortgage Brokering Sector (Code of Conduct) has been adopted by FSRA into its supervisory framework and can also be used to assess suitability regarding the prescribed factors from section 10 of Ontario Regulation 409/07. The Code of Conduct has ten principles that outline professional conduct that Canadians can expect when working with Mortgage Brokers. The ten principles listed are: Compliance / Outcomes, Accountability, Honesty, Competence, Suitability, Disclosure, Management of Conflicts of Interest, Security and Confidentiality, Stewardship, and Co-operation with Regulator.
25. The Applicant is not suitable to be licensed as a mortgage agent. His past and ongoing conduct while licensed by the LSO, and repeat failure to disclose disciplinary proceedings, criminal charges and findings of guilt to FSRA, gives the Director reasonable grounds for belief that the Applicant will not deal or trade in mortgages in accordance with the law and with integrity and honesty if licensed.
26. The public interest cannot be adequately protected by attaching terms or conditions to the licence.
27. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, this 15^th day of November 2024.

Original signed by

Yovanka McBean
Director, Licensing (A)

By delegated authority from the Chief Executive Officer

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