RECO releases details of brokerage financial filing regime set to launch this fall

• By Teri Shaw
• Posted Monday, Jun 22, 2026 10:00 am

RECO releases details of brokerage financial filing regime set to launch this fall

The Real Estate Council of Ontario (RECO) is preparing to collect financial data from every brokerage in the province as part of a new oversight framework aimed at detecting and preventing potential problems earlier.

Beginning Oct. 1, all Ontario brokerages will be required to submit annual financial information to RECO through a new digital reporting platform. RECO says the data will help identify risks, guide inspections and strengthen consumer protection.

RECO first announced the initiative in March as part of a broader effort to strengthen financial oversight and trust account monitoring within the province’s real estate sector. Tuesday’s announcement provides additional details about filing requirements, deadlines and how the information will be used.

“We’re going to get a bunch of information from 3,800 different brokerages and we’ll work through that information to determine which brokerages we’re going to visit,” said Jean Lépine, administrator and acting chief executive of RECO, in an interview with Real Estate Magazine.

According to RECO, annual filings will include information from a brokerage’s financial statements, details about trust assets and liabilities, information on unclaimed trust monies and compliance attestations from the broker of record.

How it works

The filings will be submitted through a reporting tool developed in-house by RECO and integrated into the MyWeb portal already used by registrants.

RECO says the information collected will help modernize its oversight approach by allowing it to identify anomalies and potential areas of concern more efficiently. The data will be used to inform RECO’s risk framework and help determine where regulatory resources should be focused.

Monthly reporting coming next

RECO plans to introduce monthly trust reconciliation reporting requirements in 2027. RECO said it will provide brokerages with additional details and guidance in advance of the next phase.

RECO said the future monthly reporting requirements will provide more current information to help monitor trends, identify emerging issues and respond more quickly to potential risks.

Tech-supported analysis

Lépine said RECO will use a combination of technology and human review to analyze submissions.

“In today’s world in digital spaces, you have a combination of AI and people, but there’s definitely people,” he said

Lépine said the information being requested is not new to brokerages.

“There’s nothing that brokerages don’t already develop and provide when asked,” he said.

“We’re going to have a proactive oversight opportunity where we identify where consumers or registrants are at-risk before they’re put in harm’s way.”

Enforcement action possible for non-compliance

Brokerages that fail to submit annual financial filings by the required deadline could face enforcement action under the Trust in Real Estate Services Act.

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