Ontario is implementing new financial reporting obligations for real estate brokerages as part of an effort to improve industry oversight and better protect consumers.

The Real Estate Council of Ontario (RECO) announced that, beginning Oct. 1, all registered brokerages will be required to submit annual financial information and compliance declarations to the regulator. The filings will include details related to financial statements, trust account management, access controls, unclaimed trust funds, and regulatory compliance.

According to RECO, the new framework is designed to provide earlier insight into potential financial risks within brokerages. Information collected through the annual reporting process will be used to support a risk-based regulatory approach, allowing the organization to focus resources on areas where consumer protection concerns may be greatest.

Ontario’s Minister of Public and Business Service Delivery and Procurement, Stephen Crawford, said the initiative is intended to strengthen confidence in the province’s real estate sector by ensuring that funds entrusted to brokerages are properly safeguarded.

The regulatory changes follow the high-profile collapse of iPro Realty, one of the province’s largest real estate brokerages. The company’s founders were accused of improperly using money held in trust accounts to finance business operations and make payments to investors.

RECO previously reported that trust account deficiencies totaled approximately $10.5 million, describing the situation as a significant violation of legal and fiduciary obligations owed to clients and real estate professionals. The brokerage ceased operations in August 2025, affecting roughly 2,400 agents who were forced to find new firms.

Following the shutdown, RECO established a process to compensate agents who had not received commissions. In October 2025, the regulator estimated that affected agents would recover about half of their outstanding earnings. By January 2026, that figure had increased, with eligible claimants expected to receive full reimbursement.

At the time, RECO stated that money from its insurance program stability fund would be placed into a protected trust account to cover commission claims while efforts continued to recover funds believed to have been improperly taken from brokerage trust accounts.

Jean Lépine, RECO’s administrator and acting chief executive officer, said the new reporting requirements are intended to improve the regulator’s ability to identify warning signs of financial distress or misconduct before problems become more severe.

He noted that earlier detection of irregularities would allow the regulator to respond more quickly and take corrective action when consumer deposits or agent commissions are at risk.

RECO also revealed plans for an additional layer of oversight in 2027, when brokerages will be required to provide monthly trust account reconciliation reports. The regulator said the future requirement will strengthen auditing procedures and support a more data-driven, preventative approach to industry supervision.

The new measures represent one of the most significant changes to Ontario’s real estate oversight framework in recent years, reflecting a broader effort to prevent financial misconduct and enhance consumer confidence in the sector.