The AMF: Guardian of Mortgage Brokerage in Quebec

The Autorite des marches financiers (AMF) is the integrated regulatory body for the financial sector in Quebec, created in 2004 through the merger of several regulatory organizations. Its mandate is broad: it includes overseeing the entire Quebec financial sector, including mortgage brokerage, insurance, securities, deposit institutions and trust services. In mortgage brokerage matters, the AMF is responsible for broker certification, brokerage firm oversight, law and regulation enforcement, discipline of offenders and public protection. Every mortgage broker practising in Quebec must hold a certificate issued by the AMF under the LDPSF.

Mortgage Broker Certification Process

1. AMF-recognized training: Complete the AMF-recognized mortgage brokerage training program at an accredited educational institution. Training covers mortgage law, civil law, financial regulation, ethics, financial mathematics and mortgage products.
2. Pass the certification exam: Pass the AMF certification exam, a rigorous examination covering Quebec mortgage law, applicable regulations, ethical obligations, mortgage products and practical aspects of brokerage.
3. Firm affiliation: Be affiliated with a mortgage brokerage firm that itself holds an AMF licence. The broker cannot practise independently without being affiliated with an authorized firm.
4. Professional liability insurance: Subscribe to and maintain professional liability insurance compliant with AMF minimum requirements, protecting clients in case of professional fault.
5. Mandatory continuing education: Complete the mandatory continuing education units (CEUs) during each two-year reference period to keep certification active. Subjects covered include regulatory updates, compliance and new market practices.

Firm Inspection and Oversight

The AMF conducts regular and systematic inspections of mortgage brokerage firms to verify their compliance with regulatory and ethical standards. These inspections, which may be announced or unannounced, cover several critical aspects: client file keeping (completeness, accuracy, retention), trust account management (accounting compliance, fund segregation), Code of Ethics compliance (duty to advise, conflict of interest disclosure, client's best interest), compensation disclosure practices, and continuing education compliance of affiliated brokers.

Discipline and Sanctions Arsenal

The AMF has a comprehensive arsenal of sanctions for brokers who contravene laws, regulations and ethical standards. Sanctions are graduated according to the severity of the breach and circumstances. A warning is the lightest sanction, used for minor or isolated breaches. Administrative fines can reach tens of thousands of dollars per offence. Temporary certificate suspension prevents the broker from practising for a determined period. Permanent certificate revocation definitively ends the right to practise brokerage. Restrictive conditions may also be imposed, such as the obligation to practise under supervision or complete additional training.

Decision Publication and Transparency

AMF disciplinary decisions are published on its website and constitute a permanent public record. This transparency serves a dual purpose: protecting consumers by allowing them to verify a broker's background, and deterring non-compliant practices by making consequences public. Brokers found guilty of serious breaches have their names published with détails of the offences and sanctions imposed. This publication can have a significant impact on the broker's reputation and career, well beyond the sanction itself.

The Public Protection Role

Beyond certification and discipline, the AMF plays an active role in public protection regarding mortgage brokerage. It publishes warnings against fraudulent practices, offers an information centre accessible by phone and online to answer consumer questions, produces educational guides on mortgage rights and obligations, and monitors market trends to identify emerging risks. The AMF also collaborates with other provincial and fédéral regulatory bodies to ensure consistent consumer protection across the entire financial sector.

The AMF's comprehensive approach to mortgage brokerage regulation, encompassing certification, continuing education, regular inspection, disciplinary enforcement and public information, creates a robust framework that benefits all stakeholders in the Quebec mortgage market. Consumers are protected by qualified, supervised professionals; honest brokers benefit from a level playing field that excludes unqualified practitioners; and lenders can rely on intermediaries who meet established professional standards. Understanding the full scope of the AMF's mandate and actively participating in the regulatory framework through compliance, continuing education and professional engagement is essential for every mortgage broker committed to a successful, sustainable career in Quebec.

The Autorite des marches financiers maintains a comprehensive public registry of all licensed mortgage brokers and brokerage firms in Quebec, accessible through its website. This registry allows consumers to verify the licence status and disciplinary history of any broker before entering into a professional relationship. For the industry, this transparency mechanism serves as both a consumer protection tool and a reputational incentive for maintaining high professional standards.

The AMF inspection process for mortgage brokerages follows a risk-based approach, with more frequent and thorough examinations for firms that present higher risk profiles based on factors such as volume of transactions, complaint history, and previous inspection findings. During an inspection, AMF examiners review compliance with all applicable legislation and regulations, including proper maintenance of client files, adequacy of disclosure practices, suitability of mortgage recommendations, and segregation of trust funds.

In addition to its regulatory and supervisory functions, the AMF plays an important educational role by publishing guidance documents, information bulletins, and practice standards that help mortgage brokers understand and comply with their obligations. These publications cover a wide range of topics, from anti-money laundering requirements to best practices for electronic document management, and they serve as authoritative references for compliance programs across the industry.

The AMF also coordinates with other provincial and fédéral regulators, including the Office of the Superintendent of Financial Institutions (OSFI), the Financial Consumer Agency of Canada (FCAC), and provincial securities regulators, to ensure consistent regulatory oversight of the financial services sector. This inter-regulatory cooperation is particularly important in the mortgage space, where the activities of federally regulated banks and provincially regulated brokers intersect.