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Brokerage Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

Brokerage Office Business Practices

9. Sound Financial Circumstances

Section 2-11 of the Rules requires that an applicant for a brokerage licence must satisfy RECBC that the applicant is in sound financial circumstances. This requirement is clarified in section 4-4(3)(g) of the Council Bylaws which requires that an applicant for a brokerage licence must provide evidence of unimpaired working capital of an estimate of the operating and capital expenditures of the brokerage for the first three months of operation plus an additional $5,000.00.

Each year, the financial statements for the brokerage must be submitted to RECBC with the Accountant’s Report. RECBC will consider whether the brokerage continues to be in sound financial circumstances.

Additionally, each brokerage is obligated under section 2-20 of the Rules to advise RECBC if, during any year, the brokerage is unable to pay its debts as they come due.