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Real estate signs in the Fairview Slopes neighbourhood in Vancouver.
Real estate signs in the Fairview Slopes neighbourhood in Vancouver.
(Rafal Gerszak For The Globe and Mail)

OSC cracks down on mortgage funds

While the umbrella group for Canada’s provincial securities commissions ponders whether to make new rules to manage the booming mortgage investment fund sector, the Ontario Securities Commission has decided to act on its own to clamp down on the industry.

The OSC has issued a notice saying it will no longer allow closed-end mortgage funds to be registered in the category of investment funds, arguing their active management strategy is not appropriate for what was intended to be a passive investment model.