Notices of Proposal and Licensing

Financial Responsibility as a Licensing Requirement

Some regulators can refuse or revoke a licence because of finances alone. The question is whether you can reasonably be expected to be financially responsible in conducting business.

  • Topic Notices of Proposal and Licensing
  • Sources checked November 10, 2026
Draft for legal review. This page has not yet been reviewed by Ryan J. Manilla.

Key Takeaways

  • MVDA: an applicant may be refused if, given their financial position or that of an interested person, they cannot reasonably be expected to be financially responsible (s. 6(1)(a)(i)).
  • For corporations, the finances of officers and directors also count (s. 6(1)(d)(i)–(ii)).
  • Mortgage licences can be suspended if the licensee ceases to meet prescribed requirements (MBLAA, s. 18(1)(a)).
  • Evidence of a credible financial plan can answer the concern.

The Test

Under the MVDA, an individual applicant is not entitled to registration if, having regard to their financial position or that of an interested person, they cannot reasonably be expected to be financially responsible in the conduct of business (s. 6(1)(a)(i)). For corporations, the finances of the corporation, its officers and directors, and interested persons are considered (s. 6(1)(d)(i)–(ii)).

What Helps

  • Current financial statements and a realistic plan.
  • Evidence of resolved debts, judgments or tax arrears.
  • Capital or guarantees from responsible parties.
  • Proposed conditions, such as reporting.

Frequently Asked Questions

Does a bankruptcy disqualify me?

Not automatically under the MVDA test, which asks whether you can reasonably be expected to be financially responsible. Context and recovery matter.

Are unpaid penalties relevant?

Yes. Under the MBLAA, failing to pay a fee or administrative penalty allows refusal or revocation without the usual proposal process (s. 22).

Sources

Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.

  1. Motor Vehicle Dealers Act, 2002, s. 6 — Checked November 10, 2026.
  2. Mortgage Brokerages, Lenders and Administrators Act, 2006, ss. 18, 22 — Checked November 10, 2026.

Keep Learning About Your Proceeding

Read how Ontario regulatory proceedings typically unfold, or compare how other regulators handle complaints, hearings and appeals.