Maria, a Principal Broker in Ontario, discovers that one of her licensed mortgage agents, David, has been consistently failing to obtain a signed Client Disclosure Statement (Form 1.1) from clients before presenting them with mortgage options. What is Maria's immediate and primary obligation under FSRA's requirements?

Question: Maria, a Principal Broker in Ontario, discovers that one of her licensed mortgage agents, David, has been consistently failing to obtain a signed Client Disclosure Statement (Form 1.1) from clients before presenting them with mortgage options. What is Maria's immediate and primary obligation under FSRA's requirements?

Answer options: ✅ Immediately take steps to ensure David complies with regulatory requirements and document the supervisory actions taken.

• Report David's non-compliance directly to FSRA without engaging him first.
• Provide David with additional training and allow him a grace period to correct his behaviour.
• Revoke David's license immediately as this is a serious breach of client disclosure requirements.

Correct answer: Immediately take steps to ensure David complies with regulatory requirements and document the supervisory actions taken.

Explanation: Under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) and its regulations, Principal Brokers have a duty to supervise their agents and ensure compliance with all regulatory requirements, including the use of prescribed forms like Form 1.1.