The Real Estate Council of Ontario (RECO) will require all real estate brokerages in the province to submit annual financial filings beginning October 1 as part of a new regulatory framework designed to strengthen financial oversight and protect consumer funds.

Under the new requirements announced Tuesday, brokerages must attest to and file annual financial information through RECO’s MyWeb portal. The filings will include information from brokerage financial statements, details on trust assets and liabilities, information about unclaimed trust monies, and compliance attestations from the broker of record.

RECO said the annual filings will complement its audit and inspection framework, providing the regulator with additional data to monitor financial management practices, assess risk and target regulatory resources toward brokerages that may pose greater risks to consumers.

“Ontarians buying or selling a home should have complete confidence that deposits are protected,” said Stephen Crawford, minister of public and business service delivery and procurement. “This initiative delivers on our government’s commitment to strengthen consumer protection, improve oversight and address risks before they escalate.”

RECO said the new reporting requirements are intended to help identify potential financial issues earlier and support more timely regulatory intervention when consumer funds or commissions may be at risk.

“Sector leaders agree that RECO must use every tool available to protect consumers from any financial mismanagement by brokerages. These changes will help RECO spot red flags earlier, intervene rapidly, and take timely and effective regulatory action where consumer funds and commissions are at risk,” said Jean Lépine, RECO’s administrator and acting CEO.

RECO said it will provide brokerages with detailed guidance, instructional materials and other resources to support the transition.

The regulator also plans to introduce monthly trust reconciliation reporting requirements in 2027 as part of a broader effort to strengthen financial compliance. RECO said the combination of annual and future monthly reporting, supported by its audit framework, will create a more proactive and data-driven regulatory model and align Ontario with financial oversight practices used in other jurisdictions.

The moves come as the regulator continues to deal with the fallout from the iPro Realty scandal. RECO’s restructuring plan and executive hires have drawn criticism from real estate industry leaders, despite the regulator framing the changes as necessary to rebuild trust.

RECO previously said the overhaul includes eight “ambitious transformation initiatives” for 2026, a new corporate structure and a new executive team.

The regulator’s initiatives include a culture renewal plan supported by a new performance- management system, regulatory modernization, enhanced stakeholder engagement, a digital and technology modernization roadmap, a financial sustainability strategy based on cost-recovery principles, a renewed governance approach, a public awareness campaign and the development of a new strategic plan for 2027–2030.

To deliver the plan, RECO is moving to a new organizational structure with four areas of accountability: strategy and corporate, regulatory modernization; people, culture & technology; and Finance and Risk.

Brenda Buchanan, the regulator’s former CEO, resigned effective December 31.

The Ontario government fired RECO’s entire eight member board in late November and Lépine began his work as the organization’s administrator December 1 before adding the CEO duties at the end of the month.

RECO closed iPro months after finding that about $10.5 million had been withdrawn, allegedly illegally, from the former trust accounts. The company later paid back $3 million and co-founders Rui Alves, who is a former RECO board member, and Fede Colucci agreed never to apply to certify a brokerage again or serve as brokers. As a result, they were not fined or charged.

Lépine also vowed that he and RECO will live up to their promises of improving the regulator’s operations.

Photo: iPro