92% 92% 85% 87% INSPECTIONS AND INVESTIGATIONS Inspections RECO conducts routine inspections of brokerage offices to ensure compliance with REBBA and to educate brokerages. RECO conducts inspections of brokerages to make sure they are conducting their business in accordance with the law. The face-to-face contact also provides opportunities to educate brokers of record about maintaining current and accurate records, and for them, in turn, to ask questions about leading practices in compliance. RECO inspections fall into four categories: • Routine onsite inspections of established brokerages; • Courtesy inspections with new brokerages to help them ensure that their businesses are in compliance with regulatory requirements; • Inspections generated by complaints; and • Inspections requested by RECO for a brokerage to submit trust account reconciliation statements. In 2017, routine inspections saw a decrease due to the department’s contribution to RECO’s complaints inventory reduction project. The Inspection department undertook the review and investigation of complaints to assist in managing the inventory. During onsite brokerage inspections, inspectors examine records such as bank records, trust ledgers and all other documentation created during a real estate transaction. Inspectors are also available to provide information and to answer registrant questions, in support of their compliant operation. Breakdown of Inspections by Category 2015 2016 2017 Routine 555 524 464 Reconciliation 385 332 347 Courtesy 129 135 138 Complaint 21 24 20 Survey results of those who had been through an inspection, show strong support for the inspection program: were very satisfied with RECO inspectors’ professionalism; were very satisfied with RECO inspectors’ knowledge; were very satisfied with notice given by RECO inspectors; and were very satisfied with the overall RECO inspections process. Investigations RECO investigates alleged violations of REBBA and its associated regulations. These violations may be prosecuted in Provincial Offences Court, and some matters may result in the Registrar issuing a proposal to revoke the registration. A listing of all convictions for 2017 can be found in RECO’s Regulatory Digest at www.reco.on.ca/ complaints-enforcement/regulatory-activities- decisions/regulatory-digest. Over the last few years, RECO has seen a steady increase in the number of investigations opened and closed by each year’s end. Investigations Opened and Closed 2015 2016 2017 200 150 100 50 0 Opened Opened Opened Closed Closed Closed 26/ RECO 2017 ANNUAL REPORT/BY THE NUMBERS NUMBER OF INVESTIGATIONS