Combining occupations: can a real estate broker also hold a certified issued under the Act respecting the distribution of financial products and services or registered under the Securities Act or the Derivatives Act?
Incompatibility
Changes to the Regulation respecting the pursuit of activities as a representative were adopted on December 3, 2023. This regulation, which is made under the Act respecting the distribution of financial products and services (Distribution Act), now states that a real estate broker may hold a certificate issued by the Autorité des marchés financiers (AMF) as a representative if he complies with the established rules. As such, he must at all times maintain his independence, avoid any situation of conflict of interest or appearance of conflict of interest, and be available and diligent in carrying out his activities.
Special measures to take when combining occupations
Brokers who wish to take advantage of the option to combine occupations must take certain precautions.
Availability for clients and quality of services
On the one hand, it is important to note that regulations in all fields, whether it’s real estate brokerage or insurance, financial planning, investments or derivatives, require that brokers demonstrate availability and diligence to their clients.
On the other hand, regulations governing real estate brokerage specifically require that brokers who engage in other professional activities, such as the investment or derivatives brokerage, take measures to prevent these activities from compromising their integrity, independence and competence. Similarly, brokers must refrain from practising under conditions that could compromise the quality of their services.
Absence of conflict of interest
The obligation to avoid any conflicts of interest continues to apply for real estate brokers also practising in the mortgage brokerage field. Thus the OACIQ considers that a broker representing a seller in a real estate transaction, who offers his services to act as intermediary to obtain a mortgage for the buyer in connection with this transaction, is likely to see his judgment affected, in his advice or conduct, between his own interests and those of his client.
In addition, this obligation has an impact on the obligation to inform the parties of products that concern heritage protection and relate to the transaction; a broker may not offer his own financial products and services to the parties to a transaction. For more details on this obligation to inform, read the article entitled: Duty to inform the parties of products and services that concern heritage protection and relate to the transaction.
Reporting obligations
In ending, real estate brokers who wish to also act as mortgage brokers under the Distribution Act are reminded that they will have to report to the OACIQ for their real estate brokerage activities, and to the AMF for their mortgage activities. For more information, visit the AMF website at www.lautorite.qc.ca.
