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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Ontario’s financial regulator has proposed licence sanctions against several mortgage-industry individuals and businesses, alleging they failed to provide proof of required errors and omissions (E&O) insurance, among other alleged compliance breaches. The matter is not a final finding: the named parties requested a hearing before the Financial Services Tribunal. FSRA says two brokerages remain suspended and cannot deal in or trade in mortgages in Ontario while those suspensions are in effect.
What FSRA alleges in the current case
In its enforcement notice, the Financial Services Regulatory Authority of Ontario (FSRA) names Ruby Dhunna, 9379231 Canada Inc. operating as DLC RK Mortgages, Kanwaljit Dhunna, and Platinum Mortgages Inc. FSRA alleges, among other matters, that proof of E&O insurance was not provided for DLC RK and Platinum Brokerage, and that proof for Platinum Administrator was also not provided. The notice includes other alleged issues involving inquiries, information supplied to FSRA, mortgage suitability and risk disclosure, Annual Information Returns, licensing and conduct obligations. These are allegations, not established findings. FSRA’s enforcement notice is the controlling account of the regulator’s position.
Proposed sanctions and current status
FSRA proposed refusing to renew the individual mortgage broker licences and revoking the named brokerage licences and Platinum Administrator’s licence. It also proposed a $50,000 administrative penalty against Kanwaljit Dhunna. The named parties requested a hearing before the Financial Services Tribunal, so the proposal should not be described as a final decision.
FSRA says interim suspension orders for DLC RK and Platinum Brokerage continue until the hearing concludes. While suspended, FSRA says those entities are not authorized to deal in or trade in mortgages in Ontario. The notice does not say that every named person or entity is subject to the same interim suspension.
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What E&O insurance Ontario mortgage businesses must carry
FSRA says Ontario mortgage brokerages and mortgage administrators must maintain E&O insurance at all times, including when they are not doing business. The policy must be in a form approved by FSRA, include extended coverage for fraudulent acts, and be issued by an insurer on FSRA’s approved-provider list. FSRA’s licensing guidance sets the minimums at $500,000 for any one occurrence and $1 million for all occurrences in a year. See FSRA’s E&O insurance requirements and approved-provider information.
- Coverage minimum: $500,000 for one occurrence and $1 million annual aggregate.
- Coverage scope: include extended coverage for fraudulent acts.
- Insurer: choose one on FSRA’s approved-provider list.
- Continuity: keep coverage in force at all times, even during a period with no business activity.
- Cancellation or non-renewal: notify FSRA immediately. FSRA says failure to do so may lead to an administrative monetary penalty and/or licence revocation.
FSRA’s guidance also states that E&O coverage for real-estate or insurance-agent work does not substitute for coverage of mortgage-brokering activity. In particular, FSRA says: “Please be aware that the Real Estate Council of Ontario’s (RECO) E&O insurance policy for registered real estate brokers does not cover mortgage brokerages, administrators, brokers or agents.”
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How insurance information is reported to FSRA
FSRA’s 2023 brokerage Annual Information Return (AIR) instructions illustrate the insurance details brokerages have been asked to report: policy number and expiry date, plus a certificate identifying the policy number, coverage amount, insured name, insurer and fraudulent-acts coverage. The form also asked whether coverage remained in force or lapsed during the reporting period. Its March 31, 2024 filing deadline applied to the 2023 reporting year, not to a current filing period. Consult FSRA’s AIR information for the relevant reporting-year instructions.
How this action differs from earlier FSRA E&O cases
Other FSRA matters show why a proposal, a refusal to renew and a settled penalty must not be treated as interchangeable outcomes.
| Case | Procedural status | E&O issue and outcome |
|---|---|---|
| Ruby Dhunna, 9379231 Canada Inc. (DLC RK Mortgages), Kanwaljit Dhunna and Platinum Mortgages Inc. | Proposed licence action and penalty; the parties requested a Tribunal hearing. | FSRA alleges failure to provide proof of coverage for specified entities among other alleged contraventions. Interim suspensions of DLC RK and Platinum Brokerage continue until the hearing concludes, according to FSRA’s notice. FSRA notice. |
| Sergiy Shchavyelyev | FSRA announced on February 6, 2026 that it refused to renew his mortgage brokerage licence; FSRA said he did not request a Tribunal hearing or contest the proposal. | Among its stated grounds, FSRA cited failure to notify it of an E&O lapse for the brokerage and administrator, and failure to ensure compliance with E&O and AIR requirements. FSRA enforcement information. |
| CSI Mortgages and principal broker Hansel Patrick | Parties requested a hearing after FSRA’s July 2023 notice; the matter later ended in settlements. | The notice alleged inadequate E&O coverage, failure to notify FSRA immediately of cancellation and false statements. In February 2024, FSRA announced settled penalties of $9,000 against CSI Mortgages and $4,000 against Patrick. FSRA enforcement information. |
What FSRA’s historical claim figures do—and do not—show
FSRA’s 2020 report said 15 brokerages, or 1.3%, reported 22 E&O claims in 2020. For comparison, its report recorded 32 brokerages, or 2.8%, reporting 55 claims in 2019. The same 2020 report said 308 brokerages, or 26%, reported annual-aggregate E&O limits above $2 million. These are historical, self-reported claim and coverage figures—not current estimates of insurance lapses, non-compliance or the likelihood of a claim. Read FSRA’s 2020 mortgage brokerage AIR report.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What consumers and industry readers should take from the notice
For consumers, FSRA’s stated status has a practical consequence: DLC RK and Platinum Brokerage may not deal in or trade in Ontario mortgages while their interim suspensions remain in force. The notice does not establish that the allegations have been proven, nor does it state that all named parties are suspended. For brokers and administrators, FSRA’s guidance makes clear that the insurance obligation is continuous and separate from E&O held for other regulated activities. Anyone seeking coverage should use FSRA’s approved-provider information and make inquiries through the representing insurance brokers identified there.
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