Definitions

1   In this regulation:

"Act" means the Motor Dealer Act;

"associate" means,

(a) in relation to a corporation, a director or officer of the corporation or a beneficial owner of shares of the corporation, and

(b) in relation to a partnership,

(i) an individual who is a partner of the partnership, and

(ii) if a corporation is a partner of the partnership, a director or officer of the corporation or a beneficial owner of shares of the corporation;

"broker-agent licence" means a licence issued or renewed under section 5;

"broker-agent representative licence" means a licence issued or renewed under section 14;

"business records" has the meaning given to it by section 10;

"code of conduct" means the code of conduct established under section 33 of the Motor Dealer Act Regulation;

"conflict of interest" has the meaning given to it by section 19;

"licensed salesperson" means a salesperson licensed under the Salesperson Licensing Regulation.

[am. B.C. Reg. 16/2019, Sch. 2, s. 1.]

Prohibition on acting without broker-agent licence

2   A person must not act as a broker-agent unless the person holds a valid broker-agent licence.

Broker-agent licence valid for specific business premises

3   A broker-agent licence is only valid in respect of the business premises specified in the licence.

Application for broker-agent licence

4   (1) A person may apply for a broker-agent licence or to renew a broker-agent licence by submitting to the authority

(a) an application in a form and manner approved by the authority, and

(b) the applicable fee set by the authority.

(2) An initial application under subsection (1) must include the following information, records, declarations and authorizations:

(a) the usual name of the applicant and, if applicable, the applicant's associates, and any other name used by the applicant or associate;

(b) contact information for the applicant and, if applicable, the applicant's associates, including a mailing address, residential address and telephone number and, if any, electronic mail address;

(c) the name in which the applicant will carry on business as a broker-agent and the address at which the applicant will maintain business premises;

(d) if the applicant is an individual, proof of the applicant's age, citizenship and, if relevant, authority to work in Canada;

(e) if the applicant is a corporation or partnership, proof of the applicant's authority to carry on business in British Columbia;

(f) a copy of the applicant's business plan;

(g) the name and licence number of any broker-agent representative who will be employed or engaged by the applicant;

(h) a copy of any business licence issued to the applicant by the local government or other body, in or outside British Columbia, with jurisdiction over the area in which the applicant's business premises are located;

(i) if the applicant is a corporation, the total number of issued shares of the corporation and the number of shares held by each beneficial owner of shares;

(j) declarations of the applicant and, if applicable, the applicant's associates, respecting the applicant's or associate's

(i) involvement in bankruptcy proceedings,

(ii) past conduct in the motor vehicle industry in this or any other jurisdiction, including previous dealings, if any, with the authority,

(iii) past conduct in another regulated industry in this or any other jurisdiction,

(iv) convictions, if any, for an offence under an enactment of this or any other jurisdiction in relation to consumer protection, tax, the motor vehicle industry or another regulated industry, and

(v) convictions, if any, for a crime outside Canada;

(k) authorizations necessary for the authority to

(i) obtain a criminal record check for the applicant or, if applicable, the applicant's associates,

(ii) obtain a credit report for the applicant and, if applicable, the applicant's associates,

(iii) inspect the business premises in British Columbia, if any, at which the applicant will carry on business as a broker-agent, and

(iv) verify any other information provided in the application.

(3) An application to renew a broker-agent licence under subsection (1) must include

(a) a statement confirming that the information, the records and the facts described in a declaration or authorization, provided under subsection (2) at the time of the initial application for a licence, or under this subsection at the time of the last licence renewal, continue to be accurate, or

(b) if there has been a change in the information, the records or the facts referred to in paragraph (a), a statement setting out the change and, as applicable, an updated record, declaration or authorization described in subsection (2).

(4) An application to renew a broker-agent licence must be made at least 14 days before the broker-agent licence expires.

(4.1) An application under subsection (1) must include a declaration, in the form provided by the registrar, that the applicant has read and understood the code of conduct.

(5) A registered motor dealer who applies for a broker-agent licence or to renew a broker-agent licence is exempt from the requirements described in subsections (1) (b), (2), (3) and (4.1).

[am. B.C. Reg. 16/2019, Sch. 2, s. 2.]

Issue or renewal of broker-agent licence for a term

5   On application in accordance with section 4, the authority may issue or renew a broker-agent licence for a term not exceeding one year.

Refusal to issue or renew broker-agent licence

6   (1) The authority may refuse to issue or renew a broker-agent licence if the authority considers, having regard to the financial responsibility or conduct of the applicant and, if applicable, the applicant's associates, that it would not be in the public interest for the applicant to be licensed.

(2) The authority may not refuse to issue or renew a broker-agent licence under subsection (1) unless the authority gives the applicant

(a) notice in accordance with section 18 and an opportunity to be heard, and

(b) written reasons for its decision.

Conditions on broker-agent licence

7   (1) On issuing or renewing a broker-agent licence, the authority may impose on the licence one or more of the following conditions relating to obligations of the licensee:

(a) the licensee must, within 14 days after the change, notify the authority, in writing, of any change in the information provided in the licensee's application for a broker-agent licence;

(b) the licensee must, if the licensee ceases to act as a broker-agent, immediately notify the authority in writing and surrender the licensee's broker-agent licence to the authority;

(c) the licensee or, if applicable, the licensee's associates must, on request, provide the authority with the authorization necessary for the authority to obtain a criminal record check for the licensee or associate, as the case may be;

(d) the licensee must establish, maintain and occupy business premises

(i) that are located at the address identified in the licensee's broker-agent licence, and

(ii) that are separate and distinct from premises or part of premises occupied as a residence;

(e) the licensee must display, at or near the front entrance to the licensee's business premises, any decal issued to the licensee by the authority indicating that the licensee is licensed to act as a broker-agent;

(f) the licensee must provide security within the time, in the form and in the amount required by the authority;

(g) the licensee must keep and maintain, at its business premises, business records for a period of at least 2 years after the last dealing or transaction to which the business record relates;

(h) the licensee must, if the authority receives a complaint respecting the licensee, provide the authority with the information and records the authority requires to investigate the complaint if the authority

(i) requests the information and records in writing, and

(ii) indicates in the request the nature of the complaint;

(i) the licensee must, at a reasonable time during normal business hours, on request of the authority, permit an individual authorized in writing by the authority to

(i) enter and inspect the licensee's business premises in British Columbia, and

(ii) inspect the licensee's business records;

(i.1) the licensee must, on request, provide the authority with a declaration, in the form provided by the registrar, that the licensee has read and understood the code of conduct;

(j) any other condition necessary for the authority to ensure that it is not contrary to the public interest for the licensee to be licensed as a broker-agent.

(2) Without limiting subsection (1), on issuing or renewing a broker-agent licence, the authority may impose on the licence one or more of the following conditions relating to prohibitions on the licensee:

(a) the licensee must not employ or engage a broker-agent representative other than a broker-agent representative licensed under this regulation;

(b) the licensee must not act as a broker-agent for a consumer with whom the licensee or a broker-agent representative employed or engaged by the licensee has a conflict of interest;

(c) the licensee must not act as a broker-agent for a consumer unless the licensee and the consumer have signed a written service agreement that conforms to section 9 and the licensee has given a copy of the signed agreement to the consumer;

(d) the licensee must not, on behalf of a consumer for whom the licensee acts as a broker-agent,

(i) enter into an agreement to acquire or finance a motor vehicle,

(ii) grant a waiver referred to in section 31 (6) of the Motor Dealer Act Regulation, or

(iii) acknowledge receipt of information that is required by a provincial or federal law to be disclosed to the consumer for that consumer's protection;

(e) any other condition necessary for the authority to ensure that it is not contrary to the public interest for the licensee to be licensed as a broker-agent.

(3) The authority may, on written notice to a licensed broker-agent, do either of the following:

(a) remove a condition imposed on the licensee's broker-agent licence under subsection (1) or (2);

(b) impose on the licensee's broker-agent licence a condition described in subsection (1) or (2).

[am. B.C. Reg. 16/2019, Sch. 2, s. 3.]

Display of broker-agent licence

8   A licensee must display, in a conspicuous place at the licensee's business premises, the original copy of the licensee's broker-agent licence.

Broker-agent service agreements

9   (1) For the purposes of section 7 (2) (c), a service agreement between a licensed broker-agent and a consumer conforms to this section if the agreement includes the information and statements described in this section.

(2) The following information must be included in the agreement:

(a) the name, contact information and broker-agent licence number of the licensee;

(b) the name and licence number of any broker-agent representative who provided services to the consumer on behalf of the licensee;

(c) a complete description and the acceptable history and performance characteristics, if any, of the motor vehicle the consumer wishes to acquire;

(d) the terms on which the consumer is willing to acquire or finance the motor vehicle, such as the maximum rate of interest and the maximum periodic payment the consumer is willing to pay and the acceptable length of the financing or lease term;

(e) the amount payable to the licensee for services provided to the consumer, expressed as a fixed amount payable only if a motor vehicle is acquired, or a fee for services that is

(i) a fixed amount payable whether or not a motor vehicle is acquired,

(ii) a percentage of the actual purchase price of the motor vehicle payable only if the vehicle is acquired,

(iii) an amount that exceeds an agreed upon maximum purchase price for the motor vehicle payable only if the motor vehicle is acquired, or

(iv) some combination of the fee for services under subparagraph (i), (ii) or (iii);

(f) whether the fee for services referred to in paragraph (e) is payable in advance, in instalments or upon delivery of the motor vehicle acquired;

(g) whether all or a portion of the fee for services referred to in paragraph (e) is payable under a financing or lease agreement for the motor vehicle acquired by the consumer;

(h) the duration of the agreement and, if different from the duration of the agreement, the timeframe, if any, in which the consumer wishes to acquire the motor vehicle.

(3) The following statements must be included in the agreement:

(a) a broker-agent may not act as a broker-agent for a consumer if the broker-agent or a broker-agent representative employed or engaged by the broker-agent has a conflict of interest with the consumer;

(b) if a broker-agent must end a service agreement because a conflict of interest arises during the term of the agreement, the consumer is only liable to pay

(i) the broker-agent's fees for services provided before the date the conflict of interest arises, and

(ii) out of pocket expenses incurred before the date the conflict of interest is discovered;

(c) the consumer will take title from the person disposing of the motor vehicle and not from the broker-agent or a broker-agent representative employed or engaged by the broker-agent;

(d) any cheque, bank draft or money order received from the consumer by a broker-agent or a broker-agent representative employed or engaged by the broker-agent, in payment for the acquisition of a motor vehicle, must

(i) be made payable to a specified trust account of the broker-agent at a savings institution located in British Columbia, and

(ii) identify the trust account in the manner that the trust account is identified in the records of the savings institution;

(e) money held in trust by a broker-agent may only be paid to the person disposing of the motor vehicle on the consumer's direction.

Broker-agent business records

10   For the purposes of section 7 (1) (g) and (i), the following are business records of a licensed broker-agent:

(a) a record of the consumers for whom the licensee has acted as a broker-agent;

(b) a record disclosing to a consumer a conflict of interest between the consumer and the licensee or a broker-agent representative employed or engaged by the licensee;

(c) financial records related to the licensee's broker-agent business;

(d) a record of the number of motor vehicles acquired by consumers with the assistance of the broker-agent;

(e) for each consumer referred to in paragraph (a), the following records, as applicable:

(i) a copy of the service agreement referred to in section 7 (2) (c);

(ii) correspondence, notes and other records related to the acquisition or possible acquisition of a motor vehicle by the consumer;

(iii) a record of fees for services provided and out of pocket expenses incurred in the course of providing broker-agent services to the consumer and copies of receipts for those services and expenses;

(iv) a copy of a lease and related disclosure statement provided by the broker-agent to the consumer on behalf of a lessor as defined in section 57 (1) of the Business Practices and Consumer Protection Act;

(v) a copy of a financing statement and related disclosure statement provided by the broker-agent to the consumer on behalf of a loan broker or credit grantor as defined in section 57 (1) of the Business Practices and Consumer Protection Act;

(vi) a copy of the agreement of purchase and sale of a motor vehicle;

(vii) a copy of a record provided by the broker-agent to the consumer that describes the motor vehicle, its history or its performance characteristics;

(viii) a record obtained by the licensee relating to the inspection, repair or reconditioning of a motor vehicle the consumer acquired or considered for acquisition;

(ix) a record obtained by the licensee relating to the import or export of a motor vehicle the consumer acquired or considered acquiring.

Revocation or suspension of broker-agent licence

11   (1) The authority may revoke a broker-agent licence if the licensee notifies the authority that the licensee has ceased to act as a broker-agent.

(2) The authority may revoke or suspend a broker-agent licence if the authority considers, having regard to the financial responsibility or conduct of the licensee and, if applicable, the licensee's associates, that it would not be in the public interest for the licensee to continue to be licensed.

(3) The authority may not revoke or suspend a broker-agent licence under subsection (2) unless the authority gives the licensee

(a) notice in accordance with section 18 and an opportunity to be heard, and

(b) written reasons for its decision.

(4) In the case of a suspension, the written reasons must specify the period of the suspension, which may end on a fixed date or the date the licensee meets all of the conditions specified in the written reasons.

(5) For the purposes of subsection (4), the written reasons may specify one or more of the following conditions:

(a) the licensee must comply with a specified condition on the licence;

(b) the licensee must pay a specified administrative penalty imposed under section 26.04 of the Act.

Prohibition on acting without broker-agent representative licence

12   A person must not act as a broker-agent representative unless the person holds a valid broker-agent representative licence.

Application for broker-agent representative licence

13   (1) An individual may apply for a broker-agent representative licence or to renew a broker-agent representative licence by submitting to the authority

(a) an application in a form and manner approved by the authority, and

(b) the applicable fee set by the authority.

(2) An initial application under subsection (1) must include the following information, records, declarations and authorizations:

(a) the usual name of the applicant and any other name used by the applicant;

(b) contact information for the applicant, including a mailing address, residential address and telephone number and, if any, electronic mail address;

(c) proof of the applicant's age, citizenship and, if relevant, authority to work in Canada;

(d) the name of any person who employs or engages the applicant and, if the person is a licensed broker-agent, the person's broker-agent licence number;

(e) a copy of government-issued photo identification and a wallet-sized picture of the applicant endorsed by any broker-agent who will employ or engage the applicant;

(f) declarations of the applicant respecting the applicant's

(i) past conduct in the motor vehicle industry in this or any other jurisdiction, including previous dealings, if any, with the authority,

(ii) past conduct in another regulated industry in this or any other jurisdiction,

(iii) convictions, if any, for an offence under an enactment of this or any other jurisdiction in relation to consumer protection, the motor vehicle industry or another regulated industry, and

(iv) convictions, if any, for a crime outside Canada;

(g) authorizations necessary for the authority to

(i) obtain a criminal record check for the applicant, and

(ii) verify any other information provided in the application.

(3) An application to renew a broker-agent representative licence under subsection (1) must include

(a) a statement confirming that the information, the records and the facts described in a declaration or authorization, provided under subsection (2) at the time of the initial application for a licence, or under this subsection at the time of the last licence renewal, continue to be accurate, or

(b) if there has been a change in the information, the records or the facts referred to in paragraph (a), a statement setting out the change and, as applicable, an updated record, declaration or authorization described in subsection (2).

(4) An application to renew a broker-agent representative licence must be made at least 14 days before the broker-agent representative licence expires.

(4.1) An application under subsection (1) must include a declaration, in the form provided by the registrar, that the applicant has read and understood the code of conduct.

(5) A licensed salesperson who applies for a broker-agent representative licence or to renew a broker-agent representative licence is exempt from the requirements described in subsections (1) (b), (2), (3) and (4.1) if the person

(a) is employed or engaged by a registered motor dealer who holds a valid broker-agent licence, and

(b) will be employed or engaged by the registered motor dealer as a broker-agent representative.

[am. B.C. Reg. 16/2019, Sch. 2, s. 2.]

Issue or renewal of broker-agent representative licence for a term

14   On application in accordance with section 13, the authority may issue or renew a broker-agent representative licence for a term not exceeding one year.

Refusal to issue or renew broker-agent representative licence

15   (1) The authority may refuse to issue or renew a broker-agent representative licence if the authority considers, having regard to the conduct of the applicant, that it would not be in the public interest for the applicant to be licensed.

(2) The authority may not refuse to issue or renew a broker-agent representative licence under subsection (1) unless the authority gives the applicant

(a) notice in accordance with section 18 and an opportunity to be heard, and

(b) written reasons for its decision.

Conditions on broker-agent representative licence

16   (1) On issuing or renewing a broker-agent representative licence, the authority may impose on the licence one or more of the following conditions relating to obligations of the licensee:

(a) the licensee must, within 14 days after the change, notify the authority, in writing, of any change in the information provided in the licensee's application for a broker-agent representative licence;

(b) the licensee must, if the licensee ceases to act as a broker-agent representative, immediately notify the authority in writing and surrender the licensee's broker-agent representative licence to the authority;

(c) the licensee must notify any broker-agent who employs or engages the licensee of a condition on or suspension of the licensee's broker-agent representative licence or if the licensee's broker-agent representative licence is revoked;

(d) the licensee must, on request, provide the authority with the authorization necessary for the authority to obtain a criminal record check for the licensee;

(e) the licensee must complete, to the authority's satisfaction, educational courses specified by the authority;

(f) the licensee must keep and maintain, for a period of at least 2 years after the last dealing or transaction to which the record relates, notes, correspondence and other records relating to a consumer with whom the licensee dealt or a motor vehicle being considered for acquisition by a consumer;

(g) the licensee must, on written request of the authority, produce for the authority's inspection the records described in paragraph (f) that the authority requires to determine whether the licensee's broker-agent representative licence should be renewed, suspended or revoked;

(h) the licensee must, if the authority receives a complaint respecting the licensee, provide the authority with the information and records that the authority requires to investigate the complaint if the authority

(i) requests the information and records in writing, and

(ii) indicates in the request the nature of the complaint;

(h.1) the licensee must, on request, provide the authority with a declaration, in the form provided by the registrar, that the licensee has read and understood the code of conduct;

(i) any other condition necessary for the authority to ensure that it is not contrary to the public interest for the licensee to be licensed as a broker-agent representative.

(2) Without limiting subsection (1), on issuing or renewing a broker-agent representative licence, the authority may impose on the licence one or more of the following conditions relating to prohibitions on the licensee:

(a) the licensee must not act as a broker-agent representative for a broker-agent unless the broker-agent is licensed under this regulation and named in the licensee's broker-agent representative licence;

(b) the licensee must not receive or otherwise handle a consumer's money;

(c) the licensee must not hold a management position in a broker-agent business;

(d) the licensee must not be unsupervised while acting as a broker-agent representative in a broker-agent business;

(e) the licensee must not act as a broker-agent representative for a consumer with whom the licensee or a broker-agent who employs or engages the licensee has a conflict of interest;

(f) the licensee must not, on behalf of a consumer for whom the licensee acts as a broker-agent representative,

(i) enter into an agreement to acquire or finance a motor vehicle,

(ii) grant a waiver referred to in section 31 (6) of the Motor Dealer Act Regulation, or

(iii) acknowledge receipt of information that is required by a provincial or federal law to be disclosed to the consumer for that consumer's protection;

(g) any other condition necessary for the authority to ensure that it is not contrary to the public interest for the licensee to be licensed as a broker-agent representative.

(3) The authority may, on written notice to a licensed broker-agent representative, do either of the following:

(a) remove a condition imposed on the licensee's broker-agent representative licence under subsection (1) or (2);

(b) impose on the licensee's broker-agent representative licence a condition described in subsection (1) or (2).

[am. B.C. Reg. 16/2019, Sch. 2, s. 4.]

Revocation or suspension of broker-agent representative licence

17   (1) The authority may revoke a broker-agent representative licence if the licensee notifies the authority that the licensee has ceased to act as a broker-agent representative.

(2) The authority may revoke or suspend a broker-agent representative licence if the authority considers, having regard to the conduct of the licensee, that it would not be in the public interest for the licensee to continue to be licensed.

(3) The authority may not revoke or suspend a broker-agent representative licence under subsection (2) unless the authority gives the licensee

(a) notice in accordance with section 18 and an opportunity to be heard, and

(b) written reasons for its decision.

(4) In the case of a suspension, the written reasons must specify the period of suspension, which may end on a fixed date or the date the licensee meets all of the conditions specified in the written reasons.

(5) For the purposes of subsection (4), the written reasons may specify one or more of the following conditions:

(a) the licensee must comply with a specified condition on the licence;

(b) the licensee must pay a specified administrative penalty imposed under section 26.04 of the Act.

Notice of hearing

18   A notice referred to in section 6 (2) (a), 11 (3) (a), 15 (2) (a) or 17 (3) (a) must advise the applicant or licensee, as the case may be, that the applicant or licensee has the right to be heard in writing, electronically or orally or by any combination of written, electronic or oral hearings, as determined by the authority.

Conflict of interest

19   For the purposes of this regulation, a licensee has a conflict of interest with a consumer in respect of a particular transaction to acquire a motor vehicle if the licensee represents the interests of any person other than the consumer in the transaction or a related transaction including, without limitation, by

(a) having an interest in the motor vehicle being considered for acquisition by the consumer,

(b) having an interest in a person who is a party to the transaction,

(c) having an interest in a person who finances the transaction, or

(d) receiving compensation from a person other than the consumer.