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Ontario Signals Takeover of RECO After Report Finds Serious Lapses

The minister gave RECO’s board 15 days to respond to his plan to appoint an administrator.

Overview

  • Public and Business Service Delivery Minister Stephen Crawford notified RECO of his intention to appoint an administrator to restore confidence and protect consumers.
  • A Dentons investigation reported significant deficiencies in RECO’s practices and questioned its organizational culture.
  • The review found former registrar Joseph Richer deviated from typical enforcement by pursuing an undertaking with iPro rather than freezing accounts or issuing a suspension.
  • RECO waited about three months to alert the public, and iPro’s trust accounts showed a shortfall exceeding $10 million, the largest case in RECO’s history.
  • At the minister’s direction, RECO released the Dentons report and says it has begun implementing recommendations, including stronger oversight, a new risk framework and more stakeholder engagement.